Southwest Airlines Co is down on Thursday after many analyst firms cut their price expectations for the stock. The stock was downgraded by Jefferies, which was the only firm to do so.
Southwest Airlines was reduced from a Buy to a Hold rating by Jefferies analyst Sheila Kahyaoglu, who also reduced the valuation from $60 to $45.
The rating was attributed to the firm’s inflation vulnerability, according to the Jefferies analyst.
Kahyaoglu said that Jefferies continues to favor LUV’s network and approach. However, due to the stronger exposure to inflationary pressures than peers, it believes the potential for outperformance compared to the industry is limited.
Price Target Modifications by other brokers:
- Southwest Airlines’ Buy recommendation was retained by Deutsche Bank analyst Michael Linenberg, however, the price objective was reduced from $64 to $60.
- Southwest Airlines’ Positive rating was kept by Susquehanna analyst Christopher Stathoulopoulos, who decreased the market valuation from $56 to $52.
- Southwest Airlines’ Buy recommendation was retained by MKM Partners analyst Conor Cunningham, but the price objective was reduced from $56 to $54.
- Southwest Airlines’ Overweight rating was maintained by Morgan Stanley analyst Ravi Shanker, although the price objective was reduced from $71 to $65.
Southwest Airlines’ stock has fluctuated as high as $64.75 and as low as $42.39 in the last 52 weeks. The stock was trading at $43.66 on Thursday afternoon, down 3.555 points.