Southwest Airlines Co. shares fell 1.5% Monday, after Wolfe Research downgraded the stock to peer perform from outperform on valuation grounds. “Even though we take up our target multiple by one turn today from ~12x to 13x our 2018 EPS estimates, our EPS estimates are about as high as we feel we can go,” analyst Hunter Keay wrote in a note. “Valuation isn’t cooperating.” Southwest shares have gained 27% in 2017, while the S&P 500 has gained 9%.
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