Originally Posted by
Gearjerk
Gary K., 1seat, 1eng, and all those other WN guys are all over it!!
Airtran Deal Could Hold Southwest Back: Deutsche Bank - Stocks To Watch Today - Barrons.com
Deutsche Bank analyst Michael Linenberg downgraded
Southwest (
LUV) today to Hold from Buy on concerns that it will have trouble integrating Airtran, the company it bought earlier this year. Southwest plans to integrate Airtran’s routes next year.
“The key downside risk factor for LUV, in our view, is integration risk given that
airline mergers are complex and time consuming as disparate technology systems, labor groups, cultures, fleets, and facilities are combined,” Linenberg writes.
He dropped his price target to $9 from $16. Southwest closed on Monday at $7.97, up 3.6%.
Yeah I saw that article too. A price target cut of almost 50%.
Of course most analysts are herd animals so his particular view may be on the outer fringes of the bell curve, but it is still a pretty damning statement. One really interesting thing is that he also said that they would have trouble integrating fleets. ROTFLMAO. Really? If GK and crew has trouble adding a new airplane to the mix, I would guess they aren't as brilliant as everybody thinks.. funny funny stuff right there.