Bernstein Upgrades Southwest Airlines Stock, But Still Sees Risk To The Downside
Portfolio Pulse from Erica Kollmann
Bernstein Research analyst David Vernon upgraded Southwest Airlines (NYSE:LUV) from Underperform to Market Perform, raising the price target from $26 to $32. The upgrade is based on stronger than expected domestic market development, despite concerns over Southwest's ability to return to pre-Covid profitability levels and its vulnerability due to elevated valuation. Southwest Airlines has shown a -8.16% growth over the past five years, with a beta of 1.49 indicating high volatility. Its forward P/E ratio is 17.89, below the S&P 500 average.
February 20, 2024 | 5:42 pm
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Southwest Airlines upgraded by Bernstein to Market Perform with a price target increase from $26 to $32, based on positive domestic market trends.
The upgrade reflects a positive outlook on domestic travel demand, which could support Southwest's stock in the short term. However, concerns about profitability and valuation temper the potential upside, suggesting a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100