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Southwest Airlines (LUV)  was rising 2.6% to $49.47 Friday after Wolfe Research upgraded the passenger airline's stock to outperform from peer perform.

Wolfe Research presently has a $57 price target on the airline's stock.

Analysts cited the Dallas-based company's valuation and the eventual return of Boeing's (BA) troubled MAX jet, which has been grounded for the past six months after two fatal plane crashes involving the model that occurred just months apart in Ethiopia and Indonesia.

Last month, Southwest Airlines reported record second-quarter earnings as new routes and strong air-passenger traffic offset the ongoing impact of the MAX groundings, which have forced it and other airlines to load passengers onto other types of planes.

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As part of its own second-quarter results, Boeing last week said it was taking a $4.9 billion after-tax charge for "potential concessions and other considerations to customers for disruptions related to the 737 MAX grounding."