Southwest price target raised to $42 from $40 at Raymond James

Raymond James raised the firm’s price target on Southwest (LUV) to $42 from $40 and keeps an Outperform rating on the shares. Southwest, similar to peers, cut its Q1 guidance, taking year over year revenue down 2.5 percentage points, with guidance built on a macroeconomic view where current weak trends persist through the Spring and improve somewhat into the Summer through year-end, the analyst tells investors in a research note. The firm continues to see a favorable risk-reward.