Raymond James Financial Cuts Southwest Airlines (NYSE:LUV) Price Target to $45.00

Southwest Airlines (NYSE:LUV) had its price objective dropped by investment analysts at Raymond James Financial from $55.00 to $45.00 in a research report issued to clients and investors on Tuesday,MarketScreener reports. The firm presently has an “outperform” rating on the airline’s stock. Raymond James Financial’s target price suggests a potential upside of 18.22% from the stock’s previous close.

Several other brokerages have also weighed in on LUV. Susquehanna increased their price objective on Southwest Airlines from $45.00 to $55.00 and gave the stock a “neutral” rating in a research report on Tuesday, February 3rd. BNP Paribas Exane upped their price target on Southwest Airlines from $19.00 to $24.00 and gave the company an “underperform” rating in a research note on Monday, December 8th. Citigroup lowered their price target on Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating for the company in a report on Friday, March 20th. Deutsche Bank Aktiengesellschaft raised their price objective on Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, December 12th. Finally, BMO Capital Markets upgraded shares of Southwest Airlines from a “market perform” rating to an “outperform” rating and boosted their price objective for the company from $43.00 to $57.50 in a report on Friday, January 30th. Eight research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $44.94.

Southwest Airlines Trading Up 1.3%

NYSE:LUV traded up $0.49 on Tuesday, hitting $38.06. The stock had a trading volume of 4,730,546 shares, compared to its average volume of 10,096,475. The company has a fifty day moving average price of $45.80 and a two-hundred day moving average price of $39.36. Southwest Airlines has a 1-year low of $23.82 and a 1-year high of $55.11. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. The stock has a market cap of $18.69 billion, a price-to-earnings ratio of 45.31, a PEG ratio of 0.27 and a beta of 1.10.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. The business had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The business’s revenue was up 7.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.56 EPS. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Equities research analysts expect that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Elevation Point Wealth Partners LLC acquired a new stake in shares of Southwest Airlines in the second quarter valued at $25,000. SHP Wealth Management acquired a new stake in shares of Southwest Airlines during the fourth quarter worth about $25,000. GHP Investment Advisors Inc. acquired a new stake in shares of Southwest Airlines during the fourth quarter worth about $26,000. Entrust Financial LLC purchased a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $26,000. Finally, Los Angeles Capital Management LLC acquired a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $26,000. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

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.