NEW YORK (TheStreet) -- Southwest Airlines (LUV) shares are up 1.2% to $35.01 in afternoon trading on Wednesday after analysts at JPMorgan wrote a note applauding the company raising its prices following a much publicized sale last week.
The firm said that it was encouraged by the company's decision to increase fares by $5 each way.
JPMorgan analyst Jamie Baker said that the increase appears to cover about 50% of the airline's fares with the hike concentrating on tickets that require no more than a seven-day advance purchase.
Analysts at the firm lowered the company's price target yesterday to $52 from $53 while reaffirming its "neutral" rating on the stock after the company said that its passenger revenue per available seat mile (PRASM) would decline between 6% and 8% from a year ago.
For the current quarter the company said PRASM would fall between 4% and 5%.
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 revenue growth, impressive record of earnings per share growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins."