Bernstein analyst David Vernon downgraded Southwest Airlines to Underperform from Market Perform with a $24 price target. The company’s discount airline model is disadvantaged in the new world of airline marketing, and it faces both secular and idiosyncratic cost pressures that will keep earnings power well below pre-pandemic levels near term, the analyst tells investors in a research note. The firm says Southwest’s 2023 “was a mess” while 2024 is setting up to be a transitional year.
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