As previously reported, JPMorgan analyst Jamie Baker upgraded Southwest, noting that the company raised its domestic fares by $5 one-way earlier today. The analyst, who also cites the pullback in shares following the company's earnings report and an improved outlook relative to last summer, upgraded the stock to Overweight from Neutral and set a $51.50 price target for the stock with a timeframe of December 2017.
Southwest Airlines Co. has extended its flight schedule through March 5, 2025, to allow customers to plan and book travel well into the new year. "We're positioning ourselves as a competitive choice in longer-term travel planning by displaying a greater depth of our schedule alongside our unique flexibility," said Ryan Green, Executive Vice President & Chief Commercial Officer. "I want to thank our Teams that worked across the organization to better serve our Customers by giving them even more to love about Southwest."
TD Cowen lowered the firm's price target on Southwest to $25 from $26 and keeps a Hold rating on the shares. The firm said they reported another quarterly loss as revenue growth continues to lag cost growth. Management is focused on increasing revenue to cover higher costs including higher wage rates above historical levels albeit in line with the peer group.
Says saw nice acceleration in managed business revenues in Q1. Says continued streak of "solid" operations performance in Q1. Says eliminating service in Syracuse, Cozumel, Bellingham, and Houston. Says reducing flights in Atlanta and Chicago. Comments taken from Q1 earnings conference call.
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