Redburn upgrades Southwest, stays bullish on Delta and United
Redburn reiterated Buy ratings on Delta (DAL) and United (UAL), upgrading Southwest (LUV) to Neutral, citing strong demand and unit revenue growth. The firm raised jet fuel cost forecasts but expects 2027 earnings to exceed consensus for DAL and UAL, with target prices of $105 and $150, respectively. LUV's target is $40.
How this was made
The 30-second read
Why it matters
Analyst upgrades can influence short‑term price action and investor sentiment.
Market read
The note adjusts expectations for four major carriers, potentially affecting sector momentum.
What to watch
Potential impact of upcoming labor negotiations on airlines.
Background
Redburn's research note revises its outlook on major U.S. airlines.
Ticker impact
Redburn upgraded Southwest Airlines to Neutral from Sell with a $40 target.
Modest price rise if investors follow the upgrade.
Upgrade signals better valuation and reduced downside risk.
Redburn kept a Buy rating on Delta Air Lines with a $105 target.
Support for price stability or slight upside.
Analyst confidence may sustain demand for the stock.
Redburn kept a Buy rating on United Airlines with a $150 target.
Potential modest upside.
Target price above current levels may attract buyers.
Redburn kept a Neutral rating on American Airlines with a $13.50 target.
Sideways trading likely.
Target close to current price limits upside potential.
Market effects
Airline sector may see modest support from analyst upgrades.
U.S. airline stocks could experience slight gains.
Limited to U.S. carriers; minimal global effect.
Counterpoint
The upgrades may be premature if fuel costs stay high.
Key entities
- Research FirmRedburn
Provides equity research and ratings.
- AirlineSouthwest Airlines
Subject of upgrade to Neutral.
