UBS upgraded Southwest (LUV) to Neutral from Sell with a price target of $36, up from $29. The company’s “increasingly assertive changes” bring the potential for improving financial performance despite the weaker cyclical backdrop facing the airlines currently, the analyst tells investors in a research note. The firm says Southwest’s recent move to charge for bags shows it is taking a “whatever it takes” approach to drive financial improvement. UBS believes the “aggressive” revenue and cost actions are the “right steps” which should translate to improving margin and growing earnings for Southwest.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on LUV:
- Southwest Airlines (LUV) in Settlement Talks with DOJ Over Flight Delay Lawsuit
- Cautious Outlook on Southwest Airlines Amid Uncertain Cost and Revenue Initiatives
- Frontier Airlines (NASDAQ:ULCC) Takes Advantage of Southwest Changes
- Southwest call volume above normal and directionally bullish
- Southwest price target raised to $30 from $25 at JPMorgan
Questions or Comments about the article? Write to editor@tipranks.com