Goldman Sachs Starts Southwest (LUV) at Neutral; Sidelines in the Short-Term
Tweet Send to a FriendGet Alerts LUV Hot Sheet
Price: $14.22 +1.35%
Rating Summary:
11 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 21 | New: 29
Rating Summary:
11 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 21 | New: 29
Trade LUV Now!
Goldman Sachs initiates coverage on Southwest (NYSE: LUV) with a Neutral. PT $8.50.
Analyst, Tom Kim, said, "...remain on the sidelines, as the stock looks fully valued at 13x our 12-month forward earnings estimates. We expect earnings growth to slow in 2H12 on higher comparables. Our model assumes that both traffic and yield growth moderate to a healthy but less robust pace than 1H12E. We estimate revenue growth to slow from 19% yoy in 1H12E to 8% yoy for 2H12E. Negative momentum in top-line growth is likely to cap share performance, in our view."
However, Kim believes synergies could be realized from the AirTran acquisition, which may boost earnings in the first half of 2013.
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 $9.56 yesterday, with a 52 week range of $7.15-$11.07.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Tom Kim, said, "...remain on the sidelines, as the stock looks fully valued at 13x our 12-month forward earnings estimates. We expect earnings growth to slow in 2H12 on higher comparables. Our model assumes that both traffic and yield growth moderate to a healthy but less robust pace than 1H12E. We estimate revenue growth to slow from 19% yoy in 1H12E to 8% yoy for 2H12E. Negative momentum in top-line growth is likely to cap share performance, in our view."
However, Kim believes synergies could be realized from the AirTran acquisition, which may boost earnings in the first half of 2013.
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 $9.56 yesterday, with a 52 week range of $7.15-$11.07.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Southwest Airlines Announces Organizational Leadership Change
- KeyBank Upgrades MDC Holdings (MDC); Cuts PulteGroup (PHM) & Ryland Group (RYL)
- Best Buy (BBY) Posts Q1 adj.-EPS of 32c; Comps Down 1.1%
Create E-mail Alert Related Categories
New CoverageRelated Entities
Goldman Sachs, Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
