UPDATE: JPMorgan Upgrades Southwest (LUV) to Neutral
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JPMorgan analyst Jamie Baker upgraded Southwest (NYSE: LUV) from Underweight to Neutral with a price target of $66.00 (from $44.00).
The analyst comments "Southwest possesses the industry’s deepest track record of profitability, the highest quality balance sheet, and a fiercely loyal customer base. We believe Southwest has ample liquidity to endure the COVID-19 crisis, though we believe risk/reward is more favourable in other stocks in our coverage. Accordingly, we rate LUV shares Neutral as we view current risk/reward as balanced. Given significant forecast losses this year and diminished profit expectations for next, we believe EV/EBITDAR will return as a valuation tool for investors. When taken in conjunction with our revised debt-raising expectations, not all airline balance sheets are expected to exit the current downturn looking alike."
Shares of Southwest closed at $63.23 yesterday.
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