Deutsche Bank upgraded Southwest (LUV) to Buy from Hold with a price target of $40, up from $28. Southwest’s refreshed board of directors “ushered in a new era of change” which will drive higher shareholder returns, the analyst tells investors in a research note. In addition, Deutsche believes the company’s current strategic initiatives should drive “meaningful” revenue and EBIT growth over the next 12 – 24 months. It also thinks Southwest’s return on invested capital will significantly improve over the next two years.
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