Southwest price target raised to $35 from $29 at Deutsche Bank

Deutsche Bank raised the firm’s price target on Southwest (LUV) to $35 from $29 and keeps a Hold rating on the shares. For 2025, the firm recommends owning the airline industry leaders, the companies producing the majority of the industry’s profits: American, Delta, and United. Investors should also become more acquainted with the Alaska merger story in 2025 as the carrier targets earnings accretion and margin expansion in year one, “an outcome that is unheard of in any airline merger,” the analyst tells investors in a research note. Deutsche also likes several small- and mid-cap, “niche ideas” such as JetBlue, SkyWest and Sun Country. Airline stocks are “starting to get a bid” but valuations remain attractive, even for names that have enjoyed exceptionally strong share price increases in 2024, Deutsche Bank contends.