UPDATE: Bank of America Upgrades Southwest Airlines on Stronger Domestic Pricing

In a report published Monday, Bank of America analyst Glenn D. Engel upgraded the rating on Southwest Airlines Co. LUV from Underperform to Neutral, and raised the price target from $12.50 to $15.00. In the report, Bank of America noted, “As a result of stronger-than-expected domestic pricing, we are bringing our LUV estimates closer to consensus: raising 3Q13 by $0.03 to $0.28 ($0.13 a year ago), CY13 by $0.07 to $0.92 (street, $0.97, $0.55 in 2012), and CY14 by $0.10 to $1.05 (street $1.15). As a result of the higher estimate and increase in sector valuation, we are lifting our rating to Neutral from Underperform and our P.O. to $15.” Southwest Airlines Co. closed on Friday at $14.41.