NEW YORK (TheStreet) -- Southwest Airlines (LUV) - Get Report stock is rising 0.54% to $36.96 in early afternoon trading on Tuesday as the market rebounds from the two-day selloff caused by the U.K.'s decision to leave the European Union.
Shares of Dallas-based airline carrier dropped a total of 7.15% on Friday and Monday after the results of the referendum pressured the airline sector.
In a worst-case scenario after Brexit, Southwest would perform better than its peers because of its low exposure to the country, Stifel analysts noted, according to Barron's.
Stifel analysts are bullish on the airline industry, but value Southwest's stock at a higher multiple than Delta Air Lines' (DAL) stock.
"We'd note that the gap between the two multiples is roughly in line with the 'historical' range which we attribute to LUV's cleaner balance sheet and lack of international exposure," analysts explained, Barron's reports.
Separately, Southwest Airlines has a "buy" rating and a letter grade of B+ at TheStreet Ratings because of the company's revenue growth, impressive record of earnings per share growth, increase in net income, expanding profit margins and good cash flow from operations.
You can view the full analysis from the report here: LUV
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 article's author.