Southwest (LUV) PT, Estimates Raised at BofA/Merrill Lynch Following Analyst Day

BofA/Merrill Lynch analyst Glenn Engel raised estimates and his price target on Buy-rated Southwest (NYSE: LUV) to $44.00 (from $37.00) following the company's investor day.

" As LUV reestablishes a growth and margin premium to sector, we see its shares recovering its premium multiple as well," Engel said.

He added, "LUV seat-miles will grow a faster than expected 6% in 2015 and probably only slightly less in 2016 on higher hourly utilization, greater seat density, and longer flights, which will reduce non-fuel unit costs by 1%-2% in 2016."

The firm raised FY 2015 EPS from $2.40 to $2.60 and FY 2016 EPS from $2.85 to $3.05.

For an analyst ratings summary and ratings history on Southwest click here. For more ratings news on Southwest click here.

Shares of Southwest closed at $39.37 yesterday.

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