Southwest price target lowered to $25 from $28.50 at Citi

Citi analyst Stephen Trent lowered the firm’s price target on Southwest to $25 from $28.50 and keeps a Neutral rating on the shares. The company maintains a solid balance sheet and a simplified fleet, the analyst tells investors in a research note However, Southwest’s earnings stream is not what it used to be, says the firm. It notes that network rivals are showing stronger demand, Southwest’s labor expenses and reduced capacity could pressure 2024 unit costs, while management’s cost improvement plans “look like a show me story at this juncture.”