NEW YORK (TheStreet) -- Shares of Southwest Airlines (LUV) are gaining, up 0.68% to $41.40 in pre-market trading Monday, after the airline was upgraded to "buy" from "neutral" by analysts at Goldman Sachs this morning.
The firm also raised its six month price target to $55 from $44, and cited favorable airline industry fundamentals.
Analysts at the firm said that Southwest is likely to outperform its peers, and added that they are most bullish on the domestic market where demand is set to accelerate to 3.6% year over year in 2015, while capacity continues to move upwards.
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Separately, TheStreet Ratings team rates SOUTHWEST AIRLINES as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOUTHWEST AIRLINES (LUV) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: