Southwest price target lowered to $27 from $32 at Bernstein

Bernstein lowered the firm’s price target on Southwest (LUV) to $27 from $32 and keeps a Market Perform rating on the shares. The firm notes the company guided unit revenues down to Flat to up 2% with unit costs on the higher end of the range. Although it seems like the domestic market will see an inflection point in profitability sometime in March, Southwest continues to struggle and sees lower bookings than initially expected, Bernstein says. On top of this, recent Boeing (BA) developments have reduced the number of expected deliveries in 2024 and will affect FY24 capacity plans.