Published: April 08, 2019
Raymond James downgraded the stock primarily on issues surrounding the 737 Max.
“Beyond the pressures in 2019 that are “one time” in nature (mechanics’ union dispute, MAX grounding), we remain confident in Southwest‘s ability to maintain its longer term superior margins, FCF profile, and low leverage while capitalizing on technology catch-up and international growth opportunities. Hence, while we are stepping onto the sidelines until further clarity on the timing of a MAX solution we are not negative on LUV shares. Moreover, beyond the near term, we believe some of the impact of the grounding of the MAX fleet is likely to be recouped in terms of maintenance credits or lower ownership costs of future aircraft.”
from Viral News Reports http://bit.ly/2WQy17K
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