Southwest Airlines (NYSE:LUV) Stock Price Expected to Rise, Evercore Analyst Says

Southwest Airlines (NYSE:LUV) had its price objective upped by equities researchers at Evercore from $43.00 to $44.00 in a research note issued on Friday,MarketScreener reports. Evercore’s target price would suggest a potential upside of 13.35% from the stock’s current price.

Several other analysts have also issued reports on the company. The Goldman Sachs Group dropped their price objective on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating on the stock in a research note on Wednesday, April 1st. BNP Paribas Exane increased their price target on Southwest Airlines from $24.00 to $33.00 and gave the stock an “underperform” rating in a research report on Tuesday. Wall Street Zen downgraded Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, March 14th. BMO Capital Markets reduced their target price on Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating on the stock in a report on Tuesday, March 31st. Finally, HSBC raised Southwest Airlines from a “reduce” rating to a “hold” rating and raised their target price for the company from $24.40 to $36.10 in a report on Friday. Nine equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $44.31.

Southwest Airlines Stock Up 2.8%

LUV traded up $1.07 on Friday, hitting $38.82. 1,166,324 shares of the company were exchanged, compared to its average volume of 9,628,876. Southwest Airlines has a 12 month low of $25.89 and a 12 month high of $55.11. The company has a market cap of $19.06 billion, a PE ratio of 25.06, a PEG ratio of 0.44 and a beta of 1.19. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52. The stock’s fifty day moving average is $42.96 and its 200-day moving average is $40.14.

Southwest Airlines (NYSE:LUV) last released its earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.45. Southwest Airlines had a return on equity of 10.30% and a net margin of 2.83%.The business had revenue of $7.25 billion for the quarter, compared to analyst estimates of $8.46 billion. During the same quarter in the prior year, the company posted ($0.13) earnings per share. Southwest Airlines’s revenue was up 12.8% on a year-over-year basis. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Equities research analysts predict that Southwest Airlines will post 2.72 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. SHP Wealth Management bought a new position in shares of Southwest Airlines in the 4th quarter worth about $25,000. GHP Investment Advisors Inc. acquired a new stake in shares of Southwest Airlines in the 4th quarter valued at about $26,000. Entrust Financial LLC acquired a new stake in shares of Southwest Airlines in the 4th quarter valued at about $26,000. Los Angeles Capital Management LLC acquired a new stake in shares of Southwest Airlines in the 4th quarter valued at about $26,000. Finally, Optima Capital LLC acquired a new stake in shares of Southwest Airlines in the 4th quarter valued at about $27,000. 80.82% of the stock is owned by institutional investors.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: Q1 showed tangible progress from Southwest’s turnaround: record first‑quarter passenger and unit revenues, stronger operating margin and $1.4B operating cash flow — evidence the commercial and cost initiatives are working. Read More.
• Positive Sentiment: Some analysts are upgrading/raising targets citing margin strength — Raymond James raised its price target on improved margins, supporting upside if fuel stabilizes. Read More.
• Neutral Sentiment: Q1 EPS came in roughly in line with consensus ($0.45), while revenue slightly beat estimates, so the underlying operations are improving but not dramatically surprising the Street. Read More.
• Negative Sentiment: Management set Q2 EPS guidance of $0.35–$0.65 (midpoint below consensus), and said updating FY guidance isn’t productive amid macro uncertainty — a clear near‑term earnings headwind. Read More.
• Negative Sentiment: Rising jet fuel is the main risk: management and the CEO expect higher jet fuel for the rest of the year and warned full‑year guidance is at risk, which compresses margins and could force further guidance cuts. Read More.
• Negative Sentiment: Some broker notes are mixed: HSBC upgraded LUV from Reduce to Hold but set a $36.10 target (below the recent price), highlighting divergent analyst views and potential near‑term downside from certain desks. Read More.
• Negative Sentiment: Market reaction has been negative after the quarter and the weaker Q2 guide — several outlets noted the stock fell following the results and guidance update. Read More.

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.