TD Cowen lowered the firm’s price target on Southwest (LUV) to $55 from $66 and keeps a Buy rating on the shares. The firm cut estimates for the big six U.S. airlines and Air Canada as it marked fuel estimates to market. TD assumes the airlines will be able to recapture a portion of the spike in fuel prices, but says it is hard to envision margin expansion this year “barring a rapid decline” in energy prices.
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