Southwest price target raised to $30 from $27 at Citi

Citi analyst Stephen Trent raised the firm’s price target on Southwest (LUV) to $30 from $27 and keeps a Sell rating on the shares. The company’s strategic initiatives, such as reduced managerial headcount, “could at least somewhat reduce its seat mile costs,” the analyst tells investors in a research note. However, Citi believes the extent to which Southwest’s ongoing investments are enough to help it avoid previous operational challenges is less clear. The firm gives Southwest some credit for its recent restructuring, but adds “giving them full credit seems very hard to defend.”