Southwest price target raised to $30 from $25 at Citi

Citi raised the firm’s price target on Southwest to $30 from $25 and keeps a Neutral rating on the shares. While arguing that profitability should remain “well below” pre-pandemic levels, the analyst thinks Southwest Airlines could “at least marginally benefit” from lower interest rates, even if the carrier’s large fuel hedge position probably means that Southwest sees limited benefit from lower fuel prices. Lower fuel prices and potentially declining rates could still support some multiple expansion, the analyst tells investors.