Southwest price target lowered to $23 from $30 at Citi

Citi analyst Stephen Trent lowered the firm’s price target on Southwest (LUV) to $23 from $30 and keeps a Sell rating on the shares. The firm also added the shares to its Focus List. Demand for U.S. economy class service has been the area that “looks a little soft” versus other U.S. airline revenue streams, the analyst tells investors in a research note. Citi believes tariff uncertainties may have at least somewhat impacted discretionary spending, especially for less wealthy consumers. This is all happening as Southwest’s push to build premium revenue “risks colliding with network airline competition from above,” the analyst tells investors in a research note. Citi thinks this puts downside risk on the carrier’s strategic plans.