Southwest price target raised to $38 from $35 at Evercore ISI

Evercore ISI raised the firm’s price target on Southwest (LUV) to $38 from $35 and keeps an Outperform rating on the shares. Across the firm’s airlines and lodging coverage, the analyst believes the post-election demand pickup was “quicker and stronger vs. initial expectations” and that the compressed period between Thanksgiving and peak Holidays, combined with a dose of late-year corporate travel, also likely contributed to stronger outcomes, says the analyst as the firm adjusting airline estimates and rolling its price targets to a 2026 basis.