** Southwest Airlines' shares LUV.N fall 2% to $30.44 premarket

** J.P. Morgan downgrades rating to "underweight" from "neutral" ahead of the JPM Industrials Conference (March 11-13)

** JPM cites the combination of LUV's "surging" valuation premium and rebalancing its ratings after adding Sun Country SNCY.O (to its coverage) for downgrade

** Maintains price target of $25, representing a 19.5% downside to the stock's last close

** Five brokerages rate the stock "buy" or higher, eleven "hold" and seven "sell" or lower; their median PT is $31.84 - LSEG-compiled data

** As of last close, stock has fallen 7.6% YTD

(Reporting by Aatreyee Dasgupta)

((Aatreyee.Dasgupta@thomsonreuters.com))