Argus lifted its rating to "buy" from "hold"
The shares of Southwest Airlines Co (NYSE:LUV) are inching higher this morning, following an upgrade from Argus. The analyst upped its rating on Southwest Airlines to "buy" from "hold," calling it "one of the best low-cost carriers," and citing pre-pandemic earnings stability and strong management. LUV is up 0.1% at $59.50 at last check.
LUV has rallied since early this year, bouncing off the 80-day moving average in late January. The stock is now up over 27.6% in 2021, with additional support at the 20-day moving average guiding shares higher.
Coming into today, the analyst sentiment surrounding LUV was resoundingly optimistic, with all but one of the 15 analysts in coverage calling the stock a "buy" or better. The 12-month consensus price target of $60.89, meanwhile, sits at a 2.2% premium to last night's close.
Now looks like a great time to get in on LUV's next move with options. The equity's Schaeffer's Volatility Index (SVI) of 36% stands higher than all but one percent of readings from the past year. This implies options traders are pricing in very low volatility expectations for the equity right now.