Benzinga | Dec 10, 2021 01:32PM EST

Goldman Sachs Turns Bearish On This Airlines

* Goldman Sachs analyst Catherine O'Brien downgraded Southwest Airlines Co (NYSE:LUV) to Sell from Neutral and lowered the price target to $36 (a downside of 14%), down from $59.

* The analyst expects the company to see higher-than-industry inflation over the medium-term, driven by its investments in upgrading its technology.

* O'Brien mentions this inflation will drive a slower-than-industry return to profitability as Southwest's revenue benefits from these initiatives will be offset by a weaker domestic pricing environment.

* Several analyst firms lowered their respective price targets on the stock on Thursday. Jefferies downgraded the stock.

* Price Action: LUV shares are trading lower by 4.12% at $41.82 on the last check Friday.