BUZZ-TD Cowen raises Southwest Airlines' estimates on management execution, shares climb

Reuters12-13 00:14
BUZZ-TD Cowen raises Southwest Airlines' estimates on management execution, shares climb

** Southwest Airlines LUV.N shares rise 3.1% to $42

** TD Cowen raises airline's FY26 estimates on more confidence from mgmt's Q4 execution and macro backdrop; expects FY26 adj. EPS of $3.81 vs $2.77 previously

** Brokerage says co would have hit the midpoint of their EBIT guidance, if not for shutdown

** As we contemplate the stock's performance over the past month, we believe that the multiple did compress but that our earnings outlook was too pessimistic, says brokerage

** We can envision further upside should Southwest keep executing, especially on seat initiatives, and the macro backdrop remain favorable - TD Cowen

** The new price target represents a 3% upside to stock's last close of $40.74

** Six of 25 brokerages rate the stock "buy" or higher, 13 "hold" and 12 "sell"; their median PT is $35 - LSEG data

** Including session's move, stock up 25.9% YTD

(Reporting by Utkarsh Tushar Hathi)

((utkarshtushar.hathi@thomsonreuters.com))

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