Redburn downgraded Southwest to Sell from Neutral with a $27 price target. Despite having a “best-in-class” balance sheet, Southwest’s unit revenues will continue to face downward pressure, which is not expected by consensus, the analyst tells investors in a research note. When coupled with the shares trading above a through-cycle valuation, there is downside risk, contends the firm. Reburn says growing domestic capacity should continue to pressure unit revenue for U.S. airlines.
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