Bernstein lowered the firm’s price target on Southwest to $24 from $26 and keeps a Market Perform rating on the shares. The firm notes Southwest Airlines reported a modest Q2 EPS beat of 58c and is guiding to a loss for Q3 due to pressure on main cabin revenue. The company further announced changes to the cabin, the introduction of seat assignments, and plans for premium revenue which are going to be further detailed in the fall. From where the firm sits, the company’s plans to add pitch to the front without taking anything away in the back looks difficult to contemplate, which could complicate the company’s commercial transformation.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on LUV:
- Southwest call volume above normal and directionally bullish
- SOUTHWEST AIRLINES DECLARES 182nd QUARTERLY DIVIDEND
- Southwest price target lowered to $28.25 from $29 at Citi
- Lockheed Martin upgraded, L3Harris downgraded: Wall Street’s top analyst calls
- Elliott Management Miffed with Southwest Airlines’ Revenue-Boosting Strategy