Airline stocks received some attention today as Barclays analyst Brandon Oglenski weighed in on them. He most notably downgraded Southwest Airlines (NYSE:LUV) from Buy to Hold while upgrading United Airlines (NASDAQ:UAL) and Alaska Air (NYSE:ALK) from Hold to Buy.
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Oglenski noted that “Air travel demand remains robust heading into the peak spring-break period,” which should benefit airlines. However, the Southwest downgrade was due to concerns about its outdated IT infrastructure. As a result, he anticipates more aggressive capital spending in order to address the problem.
Overall, all three stocks are considered Buys according to Wall Street. Interestingly, Alaska Air has the most upside potential at 40.9%, while United Airlines has the lowest at 13.94%.