Morgan Stanley raises Southwest Airlines stock price target

Morgan Stanley raised its stock price target for Southwest Airlines after reviewing company financial results and the carrier’s ongoing operational overhaul. The bank increased its target to $60 from its prior estimate, while keeping an overweight rating; shares closed at $50.25 on July 2. The report links the upgrade to early evidence that Southwest’s changes are reshaping demand, including a rise in revenue from customers paying for upgrades or add-ons. It cites customer behavior shifting from under 20% before the changes to 60% afterward. Southwest implemented assigned seating, new boarding groups, bag fees, and extra legroom options on Jan. 27. Morgan Stanley analysts visited Southwest’s Dallas headquarters, and the note dated June 30 highlights shifting route focus and improved business revenue in March through May.