BMO Capital upgraded Southwest (LUV) to Outperform from Market Perform with a price target of $57.50, up from $43. The airline’s current initiatives offer “significant momentum” and earnings upside to at least $4.00 per share in 2026 from 93c in 2025, the analyst tells investors in a research note. BMO sees “further runway over the coming years” for Southwest given an eventual recovery in domestic main cabin market conditions and the potential for increased share of corporate travel. Neither of which are contemplated in the company’s outlook, the firm points out.
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