UPDATE: Morgan Stanley Reiterates on Southwest Airlines on Multiple Challenges Ahead

In a report published Monday, Morgan Stanley analyst John D. Godyn reiterated an Underweight rating on

, and raised the price target from $21.00 to $23.00. In the report, Morgan Stanley noted, “Though LUV has historically benefited from a significant unit cost advantage vs. peers, we've seen this advantage erode over time amid elevated fuel prices, cost inflation while slowing capacity growth, legacy airline restructuring activity, and the emergence of New Guard low-cost carriers with even lower costs. Furthermore, we believe LUV faces an elastic demand curve, limiting its relative participation in rising industry fares - as such, we are UW LUV.” Southwest Airlines closed on Friday at $23.18.