UPDATE: JPMorgan Upgrades Southwest (LUV) to Neutral

April 14, 2021 4:00 AM EDT
Get Alerts LUV Hot Sheet
Price: $60.43 -0.66%

Rating Summary:
    23 Buy, 10 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 26 | Down: 11 | New: 8
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(Updated - April 14, 2021 4:34 AM EDT)

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."

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 $63.23 yesterday.


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