Southwest rises after analyst says acquisition will provide boost

theflyonthewall.com

Southwest Airlines (LUV) is climbing after Deutsche Bank analyst Michael Linenberg upgraded the stock to Buy from Hold in a note to investors earlier today. The airline, which is poised to increase its return on invested capital, should begin to obtain revenue and cost savings from its AirTran acquisition, Linenberg wrote. Furthermore, Southwest is poised to buy back more shares and pay down more of its debt, added the analyst, who increased his price target on the stock to $15 from $11. In mid-morning trading, Southwest advanced 20c, or 1.83%, to $11.11.

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