Southwest Airlines (NYSE: LUV) stock, which has faced challenges in recent months, received a boost from UBS as the investment firm initiated coverage on the airline with a Buy rating and set a price target of $36.00 [99643356]. UBS expects a period of profit recovery for Southwest Airlines to begin later in 2024. The firm anticipates a sequential improvement in revenue per available seat mile (RASM), projecting it to grow from a low single-digit percentage in Q2 to a mid-single-digit percentage by Q4 2024. UBS's analysis indicates that the current stock price reflects an expectation of $2.76 billion in EBITDAR for 2025, falling short of UBS's estimate of $3.64 billion. The firm believes that the near-term risks for Southwest have been largely mitigated and there is potential for significant profit growth in the latter half of the year. Southwest Airlines' strategic efforts to optimize its network and improve load factors are key drivers behind UBS's positive rating and ambitious price target for the stock [99643356].
UBS has also initiated coverage on Delta Air Lines, issuing a Buy rating with a price target of $59.00 [21471eed]. UBS projects a favorable outlook for Delta Air Lines, anticipating an increase in fiscal year 2024 and 2025 margins due to a rise in unit revenues and a reduction in cost pressures starting in the second half of 2024. UBS suggests that Delta Air Lines' revenue per seat mile (RASM) growth will exceed market expectations in the latter half of 2024 as domestic RASM increases and Atlantic RASMs remain consistent. UBS recommends purchasing Delta Air Lines shares now, ahead of the forecasted multi-quarter period of margin expansion that is expected to commence in the second half of this year [21471eed].
However, Neo Ivy Capital Management sold 37,209 shares of Delta Air Lines, Inc. (NYSE:DAL) during the 4th quarter, reducing its position by 86.2%. The firm now owns 5,935 shares of the transportation company's stock, worth $239,000 [1dba45ca]. Other hedge funds have also modified their holdings of DAL. Delta Air Lines reported $0.45 EPS for the quarter, beating the consensus estimate of $0.36 by $0.09. The company had revenue of $13.75 billion, up 7.8% compared to the same quarter last year. Delta Air Lines declared a quarterly dividend of $0.10 per share, with a dividend yield of 0.82%. The stock has a consensus rating of 'Buy' and an average target price of $59.85 [1dba45ca].
In other news, Cim LLC has acquired 4,664 shares in Duolingo, Inc. (NASDAQ: DUOL) during the 4th quarter, valued at approximately $1,058,000 [d6aeab80]. CEO Ahn Luis Von sold 12,000 shares of Duolingo stock in a transaction that occurred on Monday, April 1st. The shares were sold at an average price of $218.40, for a total value of $2,620,800.00. Insider Severin Hacker sold 10,000 shares of Duolingo stock on Monday, April 1st at an average price of $218.42. In the last 90 days, insiders sold 67,198 shares of company stock valued at $14,719,998. Duolingo, Inc. reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.27. The company had revenue of $167.70 million for the quarter. Several equities research analysts have commented on DUOL shares. Needham & Company LLC boosted their price target on shares of Duolingo from $241.00 to $267.00 and gave the stock a 'buy' rating. JMP Securities raised Duolingo from a 'market perform' rating to a 'market outperform' rating and set a $260.00 price target for the company. UBS Group boosted their price target on Duolingo from $230.00 to $275.00 and gave the stock a 'buy' rating. Piper Sandler reiterated an 'overweight' rating and set a $265.00 price objective on shares of Duolingo. JPMorgan Chase & Co. started coverage on shares of Duolingo and set an 'overweight' rating and a $270.00 target price on the stock. Duolingo, Inc. operates as a mobile learning platform offering courses in 40 different languages. The company last released its earnings results on Wednesday, May 8th, reporting $0.57 EPS for the quarter. As a group, sell-side analysts forecast that Duolingo, Inc. will post 1.74 EPS for the current year [d6aeab80].