Southwest price target lowered to $26 from $27 at Bernstein

Bernstein analyst David Vernon lowered the firm’s price target on Southwest to $26 from $27 and keeps a Market Perform rating on the shares. The Q1 reports revealed “that this is the network carriers’ world, and the low-cost guys are just living in it,” the analyst tells investors in a research note. The firm says that while low-cost capacity is struggling on the profitability front, larger airlines are insulating themselves from industry pressures by leaning into cabin segmentation and expansion of premium offerings.