UBS Group Cuts Southwest Airlines (NYSE:LUV) Price Target to $59.00

Southwest Airlines (NYSE:LUV – Get Free Report) had its price objective lowered by analysts at UBS Group from $73.00 to $59.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage presently has a “buy” rating on the airline’s stock. UBS Group’s price target points to a potential upside of 46.82% from the stock’s current price.

Several other research analysts have also recently issued reports on LUV. Weiss Ratings reissued a “hold (c)” rating on shares of Southwest Airlines in a report on Monday, December 29th. JPMorgan Chase & Co. raised Southwest Airlines from an “underweight” rating to an “overweight” rating and lifted their price objective for the company from $36.00 to $60.00 in a report on Friday, January 9th. BNP Paribas Exane increased their target price on Southwest Airlines from $19.00 to $24.00 and gave the stock an “underperform” rating in a research note on Monday, December 8th. Deutsche Bank Aktiengesellschaft raised their price target on Southwest Airlines from $40.00 to $48.00 and gave the company a “buy” rating in a report on Friday, December 12th. Finally, The Goldman Sachs Group upped their price objective on Southwest Airlines from $29.00 to $32.00 and gave the stock a “sell” rating in a report on Friday, January 30th. Eight equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, Southwest Airlines has an average rating of “Hold” and an average price target of $46.29.

Get Our Latest Report on Southwest Airlines

Southwest Airlines Stock Performance

Shares of LUV stock traded up $1.43 during midday trading on Monday, hitting $40.18. The company had a trading volume of 7,891,785 shares, compared to its average volume of 10,504,262. The stock has a market cap of $19.74 billion, a price-to-earnings ratio of 47.84, a PEG ratio of 0.28 and a beta of 1.10. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45. The company’s 50 day simple moving average is $46.67 and its 200 day simple moving average is $38.74. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $55.11.

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

Institutional Investors Weigh In On Southwest Airlines

Institutional investors and hedge funds have recently modified their holdings of the company. Franklin Resources Inc. raised its holdings in Southwest Airlines by 7.0% during the fourth quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock worth $1,661,488,000 after purchasing an additional 2,626,853 shares during the last quarter. Ameriprise Financial Inc. increased its position in shares of Southwest Airlines by 43.7% in the third quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock valued at $393,615,000 after buying an additional 3,753,183 shares in the last quarter. JPMorgan Chase & Co. raised its stake in shares of Southwest Airlines by 13.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 12,218,086 shares of the airline’s stock worth $389,879,000 after buying an additional 1,459,235 shares during the last quarter. Artisan Partners Limited Partnership raised its stake in shares of Southwest Airlines by 0.9% during the 2nd quarter. Artisan Partners Limited Partnership now owns 10,763,935 shares of the airline’s stock worth $349,182,000 after buying an additional 98,290 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its stake in shares of Southwest Airlines by 2,403.8% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock worth $328,305,000 after buying an additional 9,716,160 shares during the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

Southwest Airlines News Roundup

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

• Positive Sentiment: Broad sector relief lifted airline stocks after jet fuel prices cooled, which improves near-term margin expectations for carriers including Southwest. Airline Stocks Rally After Dismal Two Weeks When Jet Fuel Prices Soared
• Neutral Sentiment: Southwest will exit service to Chicago O’Hare and Washington Dulles effective June 4, keeping service at Midway, BWI and Reagan National — a network optimization that could trim costs but may reduce revenue exposure in major markets. Southwest is pulling the plug on flights from Chicago O’Hare and Washington Dulles
• Neutral Sentiment: Airline CEOs are publicly urging Congress to resolve the federal shutdown risk (TSA staffing/unpaid officers) ahead of heavy spring travel — a resolution would remove a near-term operational downside for all carriers. Airline CEOs Urge Congress to End Shutdown as 171 Million Travelers Expected
• Negative Sentiment: UBS cut estimates and price targets across U.S. airline coverage, citing “significant uncertainty” around fuel costs and the 2026 outlook — a downward revision that clouds analyst sentiment for LUV and peers. UBS cuts price targets on airline stocks amid ’significant uncertainty’
• Negative Sentiment: Wells Fargo lowered its price target on Southwest from $50 to $44 and moved to an “equal weight” rating — a direct analyst downgrade that can weigh on sentiment despite the stock’s current bounce. Southwest price target lowered by Wells Fargo
• Negative Sentiment: Zacks Research has issued negative estimates/forecasts for LUV earnings (including commentary around FY2028), adding to analyst-driven downside risk for the shares. Zacks Research Issues Negative Estimate for LUV Earnings What is Zacks Research’s Forecast for LUV FY2028 Earnings?
• Negative Sentiment: Customer backlash: loyal Southwest flyers are publicly upset over changes to A-List benefits — weakening loyalty sentiment could pressure premium ancillary revenue and brand perception if not addressed. Loyal Southwest Airlines flyers are giving up A-list over new rules

Southwest Airlines Company Profile

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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.

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