Southwest Airlines Recovery Pushed to 2025: Profitability Delayed, but Strong Balance Sheet Remains Intact, Analyst Says
Portfolio Pulse from Anusuya Lahiri
Southwest Airlines Co (NYSE:LUV) has been downgraded by Raymond James analyst Savanthi Syth from Strong Buy to Outperform, with a price target cut from $47 to $40. The company reported a 4.6% YoY operating revenue growth to $7.04 billion in Q2 FY23, beating consensus. However, the recovery to 2019-level profitability has been pushed from 2024 to 2025. Other analysts from TD Cowen, Barclays, and Deutsche Bank also lowered their price targets for LUV.
July 28, 2023 | 5:43 pm
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NEGATIVE IMPACT
Southwest Airlines has been downgraded and its price target cut by multiple analysts, indicating a potential negative short-term impact on its stock.
The downgrade and price target cuts by multiple analysts indicate a lack of confidence in the company's short-term performance. This could lead to a negative sentiment among investors, potentially driving the stock price down in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100