Benzinga | Nov 16, 2021 07:33AM EST

Goldman Sachs Downgrades This Airlines Citing Cost Pressure

* Goldman Sachs analyst Catherine O'Brien downgraded Southwest Airlines Co (NYSE:LUV) to Neutral from Buy and lowered the price target to $59 (implying an upside of 20%) from $63.

* The analyst expects greater cost pressure associated with the company's short-term labor ramp-up and IT investments than previously forecasted.

* O'Brien says this will weigh on Southwest's medium-term profitability, which will result in the shares underperforming versus other airlines.

* Also, read Southwest Inks 15-Year Agreement With Velocys For Sustainable Aviation Fuel.

* Price Action: LUV shares are trading lower by 0.77% at $48.75 during the premarket session on Tuesday.