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Analyst Grounds Southwest Airlines Stock with "Sell" Rating
LUVSouthwest Airlines(LUV) Schaeffers Investment Research·2025-01-16 22:19

Southwest Airlines (LUV) is lower in premarket trading, after Citi downgraded the stock to "sell" from "neutral," and cut its price target to $29.50 from $31.50. The analyst in coverage cited valuation concerns and weakening earnings quality, while citing the budget airline's deteriorating free cash flow and shrinking pre-tax margins as making Southwest less competitive to sector peers like Delta Air lines (DAL) and United Airlines (UAL).LUV, like most of Wall Street, has yet to get off the ground in 2025. ...