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Wolfe Research Downgrades Southwest, Ryanair - Read Why

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  • Wolfe Research analyst Hunter Keay downgraded Southwest Airlines Co (NYSE: LUV) to Peer Perform from Outperform as part of a broader Airlines Quarterly research note.

  • The analyst cites valuation while noting that the recent industry-wide cost problems lately suggest that the 2026 CASMx outlook wasn't "as much of a sandbag" as it may seem.

  • Keay says, though the airline's balance sheet is a "fortress situation," the stock has been as out of favor as ever in his 14-year coverage, with CEO Kelly retiring, labor unions not happy, and operations being weak.

  • The analyst also downgraded Ryanair Holdings plc (NASDAQ: RYAAY) to Peer Perform from Outperform.

  • Price Action: LUV shares are trading lower by 1.84% at $44.99, and RYAAY lower by 2.24% at $115.45 on Wednesday's last check.

Latest Ratings for LUV

Jan 2022

Susquehanna

Downgrades

Positive

Neutral

Jan 2022

Wolfe Research

Downgrades

Outperform

Peer Perform

Jan 2022

MKM Partners

Downgrades

Buy

Neutral

View More Analyst Ratings for LUV
View the Latest Analyst Ratings

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