Southwest (LUV) Named Cowen's Best Airline Idea for 2021, PT Raised to $55

Cowen analyst Helene Becker raised the price target on Southwest (NYSE: LUV) to $55.00 (from $46.00) while naming the company the Best Idea for 2021 in Airlines.

The analyst reiterated an Outperform rating, stating "The air travel environment is currently challenged and will likely remain under pressure until there is a widely available COVID-19 vaccine. Southwest is uniquely positioned to take advantage of the current landscape. The company's balance sheet remains a relative strength compared to others as they sourced ~$18.9 Bn in liquidity YTD and currently have a net cash position of ~$2 Bn,compared to ~16% cumulative net debt growth YTD by US airlines". The analyst went on to state "the path forward over the next 6 months will be challenging. We believeSouthwest shares remain an attractive option for participating in airline recovery upsidewithout taking on outsized downside risk, compared to peers."

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