Southwest (LUV) Stock Up, Deutsche Bank Lowers Price Target

Deutsche Bank lowered its price target on shares of Southwest (LUV) today, but kept its ‘buy’ rating.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Southwest Airlines (LUV) - Get Report  are up 0.27% to $37.42 this morning as analysts at Deutsche Bank drop their price target on the stock to $53 from $56.

The firm has a "buy" rating on the Dallas-based airline operator.

Deutsche Bank said that the stock is pressured by a disappointing outlook for the upcoming quarter, but more importantly, by the fact that "unlike its competitors, LUV did not provide a plan of response to weakening revenue trends."

Deutsche Bank lowered its 2016 fiscal year earnings forecast to $3.80 per share from $4 per share.

"Although we are lowering out 2016 forecast, we remain constructive long term," the firm said, citing Southwest's technology upgrade as allowing the company to align supply with demand and to optimize revenue management.

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.

The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, increase in net income, expanding profit margins and good cash flow from operations.

TheStreet Ratings feels its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

You can view the full analysis from the report here: LUV

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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