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Soleil Trims Estimates & Price Target on Southwest (LUV) Following Market Checks

April 25, 2011 10:52 AM EDT
LUV Hot Sheet
Rating Summary:
    6 Buy, 7 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 3 | Down: 1 | New: 5
Soleil Securities is reiterating its Buy rating on shares of Southwest (NYSE: LUV), but is lowering its price target by $1 to $15.

The firm is also lowering its FY11 and FY12 EPS estimates from $0.80 and $1.00 to $0.57 and $0.95 as indications only show Aprils revenue up ~6% and as Q2 looks to only have a high single digit gain.

Soleil comments that, "We are heartened that management is talking about a no growth bias for 2012, although we wish they could find a way to scale back 2011's expansion. We also continue to expect the AirTran (NYSE: AAI) acquisition, which is expected to close on May 2, to add a couple of cents to 2011 EPS and $0.05 or so to 2012."

The firm notes that shares of JetBlue (Nasdaq: JBLU) are currently a better buy in this sector.

For more ratings news on Southwest click here and for the rating history of Southwest click here.

Shares of Southwest closed at $11.31 yesterday, with a 52 week range of $10.42-$14.32.


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