Southwest (LUV) PT Maintained at $75 at Imperial Capital; 'Likely to Have Strong Earnings Growth Through FY19 & Mitigate Competitive Environment'

Imperial Capital maintained its price target on Southwest (NYSE: LUV) at $75.00 while maintaining a Outperform rating, following the company's 8K filling release and cautious commentary on the demand environment.

Analyst Michael Derchin notes the company released 8-K filings restating financials due to the new revenue recognition and accounting changes, with management suggesting passenger yields are under pressure due to competitive fare environment, timing of spring break traffic and the accelerated retirement of the legacy fleet. LUV management also pointed to strong demand for the remainder of the month, supported by favorable trends into the Easter travel period.

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