Southwest (LUV) PT Lowered to $24 at Bernstein SocGen Group

Bernstein SocGen Group analyst David Vernon lowered the price target on Southwest (NYSE: LUV) to $24.00 (from $26.00) while maintaining a Market Perform rating.

The analyst comments "Last week, Southwest Airlines reported a modest 2Q EPS beat of $0.58 (+13%) and is guiding to a loss for 3Q due to pressure on main cabin revenue. The company further announced changes to the cabin, the introduction of seat assignments, and plans for premium revenue which are going to be further detailed in the fall. From where we sit, the company’s plans to add pitch to the front without taking anything away in the back looks difficult to contemplate, which could complicate the company’s commercial transformation. Maintain M, lower target to $24."

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