Jeffries gives ‘credit where credit is due,’ ups Southwest to Hold

As previously reported, Jefferies analyst Sheila Kahyaoglu upgraded Southwest to Hold from Underperform with a price target of $32, up from $24. The firm “can get behind” about $2B of Southwest’s targeted $4B in incremental EBIT by 2027, which enhances the risk-reward profile over the next 12 months in a U.S. domestic market that could grow low-end low-single digits in 2025, the analyst tells investors. However, the next leg up from EBIT initiatives is “the more difficult execution” of assigned and paid ELR seats taking effect in the first half of 2026, the analyst added.