Southwest Airlines (NYSE:LUV) Price Target Cut to $59.00 by Analysts at JPMorgan Chase & Co.

Southwest Airlines (NYSE:LUV) had its price target dropped by research analysts at JPMorgan Chase & Co. from $60.00 to $59.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has an “overweight” rating on the airline’s stock. JPMorgan Chase & Co.‘s price target would suggest a potential upside of 29.81% from the company’s current price.

LUV has been the subject of several other reports. Barclays raised their target price on Southwest Airlines from $56.00 to $65.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. Raymond James Financial increased their price target on Southwest Airlines from $55.00 to $60.00 and gave the company an “outperform” rating in a research note on Monday, July 6th. Evercore raised their price objective on Southwest Airlines from $44.00 to $52.00 in a research report on Thursday, June 25th. Susquehanna lifted their price objective on Southwest Airlines from $44.00 to $55.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 7th. Finally, Zacks Research upgraded Southwest Airlines from a “strong sell” rating to a “hold” rating in a report on Thursday, June 25th. Nine analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $49.55.

Southwest Airlines Price Performance

Shares of LUV stock traded up $0.74 on Friday, hitting $45.45. 3,220,485 shares of the company’s stock were exchanged, compared to its average volume of 8,244,103. The company has a 50 day moving average of $45.88 and a 200 day moving average of $44.29. The stock has a market cap of $22.21 billion, a P/E ratio of 27.89, a price-to-earnings-growth ratio of 0.45 and a beta of 1.12. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41. Southwest Airlines has a 12 month low of $28.98 and a 12 month high of $55.11.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 13.93%. The company had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. During the same period in the prior year, the business earned $0.43 earnings per share. The company’s revenue for the quarter was up 16.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. On average, equities research analysts predict that Southwest Airlines will post 3.23 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. AQR Capital Management LLC grew its holdings in shares of Southwest Airlines by 100.6% in the first quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock valued at $1,303,000 after acquiring an additional 19,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Southwest Airlines by 5.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after purchasing an additional 3,141 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of Southwest Airlines by 7.6% in the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after purchasing an additional 527 shares during the period. EverSource Wealth Advisors LLC lifted its stake in Southwest Airlines by 73.4% in the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock valued at $185,000 after purchasing an additional 2,408 shares during the last quarter. Finally, First Trust Advisors LP grew its holdings in Southwest Airlines by 47.4% during the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock valued at $9,979,000 after purchasing an additional 98,986 shares during the period. Institutional investors own 80.82% of the company’s stock.

Southwest Airlines News Summary

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

• Positive Sentiment: Southwest beat Q2 expectations, reporting adjusted EPS of $0.94 versus $0.52 expected and revenue of $8.72 billion, with record quarterly revenues and strong margin expansion. Southwest Airlines Co (LUV) Q2 2026 Earnings Call Highlights: Record Revenues and Strong …
• Positive Sentiment: Analyst sentiment improved in places, with Zacks upgrading LUV to Buy and Barclays keeping its Buy rating, which supports the longer-term outlook. Barclays Keeps Their Buy Rating on Southwest Airlines (LUV)
• Neutral Sentiment: Southwest used a Jones Act waiver to charter fuel by ship from Texas to California, highlighting active supply-chain management as jet fuel markets remain volatile. Southwest Airlines put Texas jet fuel on a boat to LA for the first time amid supply worries
• Neutral Sentiment: Citigroup lowered its price target on Southwest to $50 from $55 and kept a Neutral rating, signaling caution but still implying some upside from recent levels.
• Negative Sentiment: Guidance disappointed: Southwest’s Q3 EPS outlook of $0.50 to $0.75 came in below Wall Street expectations, and the company also cut its full-year forecast to $3.25 to $4.25 as fuel expenses rose sharply. Fuel swings turn US airline earnings forecasts into moving targets
• Negative Sentiment: Higher jet fuel prices are a broad industry headwind, and Southwest specifically said fuel costs increased by about $889 million, pressuring profit despite strong demand. Southwest Airlines profit jumps 9% as passengers pick up fuel tab, but third-quarter forecast falls short

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.