S&P Capital IQ Reiterates its BUY Rating on Southwest Airlines

October 21 00:00 2011

NEW YORK, October 21 (RainbowNewsLine.com) – Analyst Jim Corridore of S&P Capital IQ maintains his BUY rating on the shares of Southwest Airlines (NYSE: LUV), while adjusting his estimates for the company. The target price is set to $13.

Analyst Jim Corridore, in a research note published yesterday mentions that the company reported Q3  EPS short of the estimates and ahead of the consensus, reflecting strong revenue growth, good October bookings, and good performance by AirTran market. The integration with AirTran will benefit the company by increase in business travel revenues with more business travelers, the analyst believes. The EPS estimate for 2011 has been reduced from $0.48 to $0.47 and the EPS estimate for 2012 has been raised from $0.85 to $0.95.