Southwest price target lowered to $20 from $25 at Jefferies

Jefferies analyst Sheila Kahyaoglu lowered the firm’s price target on Southwest to $20 from $25 and keeps an Underperform rating on the shares as part of a Q3 preview for the U.S. airlines group. Demand is “flashing warning signs” and firm believes that August softness could be structural, not seasonal, the analyst tells investors. 2023 EPS free cash flow outlooks will be lower “on fuel alone,” but the magnitude of cuts could deepen from labor and maintenance costs as well as any deviation in bookings, the analyst tells investors.