The Goldman Sachs Group Forecasts Strong Price Appreciation for Southwest Airlines (NYSE:LUV) Stock

Southwest Airlines (NYSE:LUV) had its target price increased by equities researchers at The Goldman Sachs Group from $29.00 to $32.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has a “sell” rating on the airline’s stock. The Goldman Sachs Group’s price objective would suggest a potential downside of 32.72% from the stock’s previous close.

Several other equities research analysts have also weighed in on the stock. Deutsche Bank Aktiengesellschaft upped their target price on shares of Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, December 12th. BNP Paribas Exane raised their price objective on shares of Southwest Airlines from $19.00 to $24.00 and gave the stock an “underperform” rating in a report on Monday, December 8th. Wells Fargo & Company boosted their target price on Southwest Airlines from $45.00 to $50.00 and gave the stock an “equal weight” rating in a report on Friday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Southwest Airlines in a report on Monday, December 29th. Finally, TD Cowen lifted their price objective on Southwest Airlines from $42.00 to $50.00 and gave the company a “hold” rating in a research report on Friday. Seven investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, Southwest Airlines has a consensus rating of “Hold” and a consensus target price of $44.76.

Southwest Airlines Price Performance

Shares of LUV stock traded down $0.94 during trading hours on Friday, hitting $47.56. The company had a trading volume of 6,499,361 shares, compared to its average volume of 9,822,214. Southwest Airlines has a 12 month low of $23.82 and a 12 month high of $49.85. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.42 and a current ratio of 0.49. The firm’s fifty day moving average is $40.42 and its 200 day moving average is $35.14. The firm has a market capitalization of $24.60 billion, a price-to-earnings ratio of 56.61, a PEG ratio of 0.37 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, beating the consensus estimate of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.11% and a net margin of 1.57%.The business had revenue of $7.44 billion for the quarter, compared to analyst estimates of $7.51 billion. During the same quarter in the previous year, the firm earned $0.56 EPS. Southwest Airlines’s quarterly revenue was up 7.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. On average, sell-side analysts predict that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in LUV. RWA Wealth Partners LLC bought a new stake in shares of Southwest Airlines in the second quarter worth $1,652,000. Hussman Strategic Advisors Inc. acquired a new stake in Southwest Airlines in the 3rd quarter valued at $2,010,000. Howard Capital Management Inc. lifted its position in Southwest Airlines by 8.3% during the 2nd quarter. Howard Capital Management Inc. now owns 127,218 shares of the airline’s stock worth $4,150,000 after buying an additional 9,739 shares in the last quarter. Gradient Investments LLC boosted its stake in shares of Southwest Airlines by 5.4% during the 3rd quarter. Gradient Investments LLC now owns 578,088 shares of the airline’s stock worth $18,447,000 after buying an additional 29,665 shares during the last quarter. Finally, Rhumbline Advisers grew its holdings in shares of Southwest Airlines by 30.1% in the 2nd quarter. Rhumbline Advisers now owns 1,406,652 shares of the airline’s stock valued at $45,632,000 after acquiring an additional 325,030 shares in the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

Trending Headlines about Southwest Airlines

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: Management guided FY‑2026 adjusted EPS of at least $4.00 (vs. ~$0.93 in 2025), citing revenue initiatives and cost discipline — a large, market‑moving beat that underpins the recent rally. PR Newswire: Southwest 4Q/2025 Results & Guidance
• Positive Sentiment: Strategic shift — ending 54 years of “open seating,” adding assigned seats and new ancillary fees (bag/seat upsells) — is being priced as a sustainable revenue and margin lever by investors and analysts. WSJ: Assigned Seating & Profit Surge
• Positive Sentiment: Several bullish analyst moves followed the results: Morgan Stanley raised its target to $55 (overweight) and BMO upgraded to outperform with a $57.50 target — both support upside expectations among some Wall‑Street desks. Benzinga: Analyst Calls
• Neutral Sentiment: Q4 showed mixed fundamentals: EPS modestly beat estimates while revenue slightly missed — investors are weighing margin improvement versus top‑line cadence. Zacks: Q4 Results Summary
• Neutral Sentiment: Market commentary and comparisons (Zacks, Seeking Alpha, 24/7 Wall St.) are driving headlines, but these pieces mainly contextualize the earnings/guidance rather than add new catalysts. Zacks: Sector Performance
• Negative Sentiment: Not all analysts are bullish — Bank of America kept an “underperform” stance despite lifting its target to $42, and several other targets remain below the current price, creating mixed sell‑side signals and potential pressure on the stock. Benzinga: Analyst Targets
• Negative Sentiment: Near‑term cadence risk: Southwest guided Q1 2026 EPS ~ $0.45 (below consensus ~ $0.57), creating a possible short‑term performance headwind even as full‑year guidance is strong. PR Newswire: Guidance Details
• Negative Sentiment: Options market activity showed a large uptick in put buying (notable increase in put volume), indicating some traders are hedging or betting on downside/volatility. (market data entry)

Southwest Airlines Company Profile

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest’s operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.