Bulletin
Investor Alert

Nov. 18, 2020, 10:01 a.m. EST

Southwest Foreseen to Recover as Pandemic Lifts

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Southwest Airlines Co. (LUV)
  • X
    Delta Air Lines Inc. (DAL)
  • X
    United Airlines Holdings Inc. (UAL)

or Cancel Already have a watchlist? Log In

Nov 18, 2020 (Baystreet.ca via COMTEX) -- Jefferies is getting bullish on one name in the airline space.

The ratings agency initiated coverage of Southwest /zigman2/quotes/201071949/composite LUV -1.65% on Tuesday with a buy rating, in a split call that named Delta /zigman2/quotes/200327741/composite DAL -2.72% and United /zigman2/quotes/205037281/composite UAL -5.79% as holds and American /zigman2/quotes/209207041/composite AAL -4.40% as a sell. Analysts gave Southwest a $55 price target, saying the airline is best positioned to benefit from a return to domestic U.S. travel.

The charts also support more upside, according to experts. Based on a technical analysis, he said the stock could move up to break through $55 and then possibly break above $70 should a Covid-19 vaccine become widely available. A move above $70 implies more than 50% upside and would mark a new high for the first time since December 2017.

Mark Tepper, president of Strategic Wealth Partners, also sees Southwest as one of the best-positioned airlines as air travel slowly returns to normal, but he also urges caution on when to jump in.

"The theme at least over the next few months is domestic over international travel and leisure over business travel, and when you look at Southwest, they've got the highest percentage of seat miles coming from domestic flights and they're also more heavily tilted towards leisure over business."

Southwest has surged 92% in the past six months. Those shares took flight early Wednesday, $1.17, or 2.6%, to $46.83.

COMTEX_374635583/2559/2020-11-18T10:00:40

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/201071949/composite
US : U.S.: NYSE
$ 58.31
-0.98 -1.65%
Volume: 16.99M
Feb. 25, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$35.02 billion
Rev. per Employee
$160,142
loading...
/zigman2/quotes/200327741/composite
US : U.S.: NYSE
$ 48.25
-1.35 -2.72%
Volume: 15.73M
Feb. 25, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$31.65 billion
Rev. per Employee
$231,014
loading...
/zigman2/quotes/205037281/composite
US : U.S.: Nasdaq
$ 51.78
-3.18 -5.79%
Volume: 25.95M
Feb. 25, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$17.14 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 20.86
-0.96 -4.40%
Volume: 65.57M
Feb. 25, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$13.96 billion
Rev. per Employee
$168,812
loading...

This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.