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Southwest downgraded to Sell at Melius Research with strategy ‘not working’

As previously reported, Melius Research downgraded Southwest to Sell from Hold with a price target of $19, down from $30. Southwest’s strategy to outgrow their issues is “not working” and there are two paths Southwest can take – either move forward with the current plan or reset by slowing growth – both of which pose downside risk, the analyst tells investors. Melius’ EPS estimates are 55% below the Street in 2024 and 47% below consensus in 2025, the analyst noted.

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