Bank of America Upgrades Southwest Airlines (NYSE:LUV) to “Buy”

Southwest Airlines (NYSE:LUV) was upgraded by equities researchers at Bank of America from a “neutral” rating to a “buy” rating in a research report issued on Monday, The Fly reports. The firm currently has a $43.00 price objective on the airline’s stock, down from their previous price objective of $48.00. Bank of America‘s price target would indicate a potential upside of 14.18% from the stock’s previous close.

Several other analysts have also recently commented on LUV. Zacks Investment Research cut shares of Southwest Airlines from a “hold” rating to a “sell” rating and set a $58.00 price target for the company. in a report on Friday, January 3rd. UBS Group cut shares of Southwest Airlines to a “reduce” rating in a report on Tuesday, March 17th. Deutsche Bank cut shares of Southwest Airlines from a “buy” rating to a “hold” rating and decreased their price target for the stock from $62.00 to $58.00 in a report on Friday, January 17th. Evercore ISI upgraded shares of Southwest Airlines from an “in-line” rating to an “outperform” rating and set a $55.00 price target for the company in a report on Monday, March 2nd. Finally, TheStreet cut shares of Southwest Airlines from a “b” rating to a “c+” rating in a report on Tuesday, March 3rd. Two analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $55.42.

LUV stock opened at $37.66 on Monday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.61 and a current ratio of 0.67. The stock has a market cap of $16.52 billion, a P/E ratio of 8.80, a P/E/G ratio of 0.79 and a beta of 1.58. The firm has a 50 day simple moving average of $48.50 and a 200 day simple moving average of $53.50. Southwest Airlines has a 52 week low of $29.15 and a 52 week high of $58.83.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Thursday, January 23rd. The airline reported $0.98 EPS for the quarter, missing the consensus estimate of $1.09 by ($0.11). The company had revenue of $5.73 billion for the quarter, compared to analyst estimates of $5.74 billion. Southwest Airlines had a return on equity of 23.31% and a net margin of 10.26%. The business’s revenue for the quarter was up .4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.17 earnings per share. Sell-side analysts predict that Southwest Airlines will post 4.12 EPS for the current year.

A number of hedge funds and other institutional investors have recently bought and sold shares of LUV. Raab & Moskowitz Asset Management LLC acquired a new stake in Southwest Airlines in the fourth quarter valued at approximately $26,000. Great Diamond Partners LLC bought a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $30,000. Atlas Private Wealth Management bought a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $30,000. Islay Capital Management LLC bought a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $32,000. Finally, Penserra Capital Management LLC raised its position in shares of Southwest Airlines by 79.0% in the third quarter. Penserra Capital Management LLC now owns 691 shares of the airline’s stock valued at $36,000 after purchasing an additional 305 shares during the period. Hedge funds and other institutional investors own 85.78% of the company’s stock.

Southwest Airlines Company Profile

Southwest Airlines Co operates a passenger airline that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2018, the company operated a total of 750 Boeing 737 aircraft; and served 99 destinations in 40 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.

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Analyst Recommendations for Southwest Airlines (NYSE:LUV)

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