Southwest Airlines (NYSE:LUV) Price Target Raised to $45.00

Southwest Airlines (NYSE:LUV) had its target price raised by stock analysts at Evercore ISI from $40.00 to $45.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has an “in-line” rating on the airline’s stock. Evercore ISI’s target price indicates a potential upside of 9.93% from the stock’s previous close.

Other equities analysts have also recently issued reports about the company. Citigroup lifted their price objective on Southwest Airlines from $38.00 to $44.00 and gave the stock a “neutral” rating in a report on Wednesday, January 7th. BMO Capital Markets assumed coverage on shares of Southwest Airlines in a research report on Tuesday, December 9th. They set a “market perform” rating and a $43.00 target price for the company. UBS Group upped their price target on shares of Southwest Airlines from $43.00 to $45.00 and gave the company a “neutral” rating in a report on Tuesday, January 6th. 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 research note on Monday, December 8th. Finally, Sanford C. Bernstein upped their target price on Southwest Airlines from $31.00 to $34.00 and gave the company a “market perform” rating in a research note on Thursday, November 20th. Six investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $42.63.

Southwest Airlines Trading Down 1.0%

NYSE LUV opened at $40.94 on Thursday. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.52. The firm has a 50-day moving average price of $40.07 and a 200 day moving average price of $35.05. The stock has a market capitalization of $21.17 billion, a P/E ratio of 62.98, a P/E/G ratio of 0.37 and a beta of 1.16. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $45.02.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.39% and a net margin of 1.38%.The firm had revenue of $7.44 billion for the quarter, compared to analyst estimates of $7.51 billion. During the same quarter in the prior year, the company posted $0.56 earnings per share. 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. Equities research analysts expect that Southwest Airlines will post 1.55 EPS for the current year.

Institutional Trading of Southwest Airlines

Hedge funds have recently added to or reduced their stakes in the business. Kercheville Advisors LLC increased its stake in shares of Southwest Airlines by 111.7% during the 4th quarter. Kercheville Advisors LLC now owns 129,524 shares of the airline’s stock valued at $5,497,000 after acquiring an additional 68,350 shares during the last quarter. Nvest Wealth Strategies Inc. purchased a new stake in Southwest Airlines in the fourth quarter valued at approximately $47,000. Evergreen Capital Management LLC acquired a new position in Southwest Airlines during the fourth quarter worth approximately $439,000. Richards Merrill & Peterson Inc. purchased a new position in Southwest Airlines during the fourth quarter worth approximately $35,000. Finally, Tred Avon Family Wealth LLC acquired a new position in shares of Southwest Airlines in the 4th quarter valued at $213,000. 80.82% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Southwest Airlines

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

• Positive Sentiment: Management raised 2026 adjusted EPS guidance to at least $4.00, calling for a large profit surge driven by its business transformation and new revenue streams. This outlook underpins longer‑term upside expectations. SOUTHWEST AIRLINES REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
• Positive Sentiment: Q4 EPS beat consensus (reported $0.58 vs. $0.56 est.), showing underlying margin improvement and operational gains that support profitability momentum. Southwest Airlines (LUV) Surpasses Q4 Earnings Estimates
• Positive Sentiment: Companywide pricing and product changes — including the end of open seating and bag fees — are being presented as durable revenue levers that should lift yields and margins over 2026. Southwest Forecasts Profit Surge as Assigned‑Seating Flights Take Off
• Neutral Sentiment: Revenue grew year‑over‑year (+7.4% to $7.44B) but slightly missed some top‑line estimates, reflecting mixed demand/pricing dynamics that investors will watch for sustainability. Q4 Press Release
• Neutral Sentiment: Some analysts are revising targets (e.g., Jefferies raised its target to $45), highlighting divergent views among sell‑side firms on how quickly revenue initiatives convert to durable profits. Jefferies Raises Southwest Price Target to $45
• Negative Sentiment: Q1 2026 EPS guidance of $0.45 is below the street (consensus ~$0.57), creating near‑term earnings disappointment and giving traders a reason to trim positions into the quarter.
• Negative Sentiment: Unusual options flow — a large block of put buying — suggests elevated hedging or bearish positioning that can amplify downside price pressure in the short term.

About Southwest Airlines

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.