LUV Stock Forecast: Cleared to Takeoff But Not Yet to Soar
This Southwest Airlines (NYSE: LUV) stock forecast article is written by Hao Liu, Financial Analyst at I Know First.
Summary:
- The worst seems to have passed for the airline industry, but it may take at least 3 years before it fully recovers.
- Meanwhile the industry will face potential challenges such as price war and heavy debt burdens.
- Southwest is likely to lose less than other airlines in this Covid-19 crisis due to its low-cost strategy, domestic service feature and strong fundamentals (especially high solvency).
- Both fundamental and technical analysis indicate a moderate BUY/HOLD recommendation for LUV, but investors should be particularly cautious when it comes to airline companies in the following years.
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