Report
Chris Higgins
EUR 147.86 For Business Accounts Only

Southwest faces revenue headwinds in 2016, but the company is still managing to post record profits.

We are transferring coverage of two U.S. Airlines--Southwest and United--and simultaneously launching coverage on Delta and American. Although sentiment recently turned bullish on airlines, we don’t find any undervalued stocks in our U.S. coverage list; the average price/fair value ratio is 1.09. Moreover, we maintain that airlines lack a moat. We’re cautious on airlines but think 2017 might provide investors with possible buying opportunities.
All four airlines we cover--Southwest, United, Amer...
Underlying
SOUTHWEST AIRLINES CO.

Southwest Airlines operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The company has Boeing 737 aircraft in its fleet and serves destinations in various states, the District of Columbia, the Commonwealth of Puerto Rico, and other near-international countries such as Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. The company principally provides point-to-point service, which allows for direct nonstop routing. The company also provides a suite of digital platforms to support Customers' needs prior to and during the course of their travel.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Chris Higgins

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