Morgan Stanley lowered the firm’s price target on Southwest (LUV) to $38 from $41 and keeps an Overweight rating on the shares after its Q1 results and outlook. The company’s guidance reflected understandable industry weakness, but the management exuded strong confidence on internal initiatives coming through, while pushing back on skepticism of the rate of change, the analyst tells investors in a research note. Given its big buyback and solid balance sheet, Southwest may emerge as a sleeper hit in a challenging year, the firm added.
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