analyst Joseph DeNardi cited the airline's conservative balance sheet and strong liquidity, and the fact that the carrier still has plenty of unencumbered assets available.
It would be wise to proceed with caution, however. Airlines are taking on debt and issuing new shares to bolster their balance sheets for what is expected to be a prolonged downturn. This is happening as the specter of bankruptcies and consolidation looms large. This "presents an attractive entry point as Southwest will, undoubtedly, emerge from this crisis in a stronger position than it entered," he wrote in the report,. DeNardi noted that despite the difficulty of predicting the pace of demand recovery, historical evidence suggests that the overall air travel sector is one of the more resilient areas of the economy.
"That is, by far, the strongest liquidity position in the industry for a company which also has the strongest underlying balance sheet and the best leverage with its aircraft OEM when it comes to managing capex over the next few years," the Stifel report says. The airline also stands to benefit from future earnings through its credit card partnership with JPMorgan Chase. The bank purchases frequent-flyer miles from Southwest, which it then distributes to its cardholders as spending rewards.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Analysts say stocks like Southwest are buying opportunities during this dismal earnings seasonYour weekend brief: Analysts say stocks like Southwest are buying opportunities during this dismal earnings season Pro Are these analysts at banks also holding stock they want to offload CoughgoldmanCough Pro Has SECEnfDirectors asked about jimcramer and Gilead? Pro With Trump in charge.....I doubt it. His faulty handling of the virus response and subsequent shutdown have damaged the economy. Now we have huge debt that still won’t be able to save a large number of small businesses. Couple that with a potential 2nd wave of the virus.
Source: CNBC - 🏆 12. / 72 Read more »
Stock market crash: Buying power will run out in one week, Normura says - Business Insider'Brace for selling': A Wall Street quant strategist warns that stock-market buying power could evaporate just one week from now — opening the floodgates for a 'sell in May' episode Click bate
Source: BusinessInsider - 🏆 729. / 51 Read more »
Warren Buffett sells airline stocks, says buying into the pandemic-stricken industry was a mistakeBillionaire investor Warren Buffett's company sold off stocks in four major U.S. airlines. During an annual meeting Saturday through a live-stream, he called the investments during a pandemic 'a mistake.' Et tu Warren? Et tu? Ya think? 👀
Source: Newsweek - 🏆 468. / 52 Read more »
Warren Buffett, Berkshire Hathaway sold its airline stocks in April - Business InsiderWarren Buffett's Berkshire Hathaway ditched the 'big four' airline stocks in April, driving $6.1 billion in stock sales Don’t be too harsh on yourself if you make terrible stock pick. Even Buffett do that and make a U-turn. why drop those aerial moguls’ stocks now? jmyers42 lccc141
Source: BusinessInsider - 🏆 729. / 51 Read more »