Southwest (LUV) PT Lowered to $56 at Imperial Capital

Imperial Capital analyst Michael Derchin lowered the price target on Southwest (NYSE: LUV) to $56.00 (from $66.00) while maintaining a In-Line rating following the company's 3Q earnings report. In its release on 10/25/18, LUV indicated FY19 CASM ex-fuel is expected to increase 3% due to necessary investments throughout the business.

Derchin believes that LUV is likely to face margin pressures in FY19 from higher costs and unit revenue headwinds from its Hawaii operation, as well as ongoing competitive situations, and a lack of GDS presence.

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