Southwest Airlines (NYSE:LUV) Stock Price Expected to Rise, Jefferies Financial Group Analyst Says
by Sarita Garza · The Markets DailySouthwest Airlines (NYSE:LUV – Get Free Report) had its target price hoisted by research analysts at Jefferies Financial Group from $45.00 to $48.00 in a research note issued to investors on Monday,Benzinga reports. The firm currently has a “hold” rating on the airline’s stock. Jefferies Financial Group’s price target points to a potential downside of 3.27% from the company’s previous close.
A number of other research firms have also recently issued reports on LUV. Sanford C. Bernstein lifted their price target on Southwest Airlines from $31.00 to $34.00 and gave the company a “market perform” rating in a report on Thursday, November 20th. Susquehanna raised their price target on Southwest Airlines from $35.00 to $45.00 and gave the stock a “neutral” rating in a research report on Friday, January 9th. Morgan Stanley lifted their price objective on shares of Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a research note on Friday. UBS Group boosted their target price on Southwest Airlines from $45.00 to $51.00 and gave the company a “neutral” rating in a research note on Monday. Finally, BNP Paribas Exane lifted their price target on shares of Southwest Airlines from $19.00 to $24.00 and gave the company an “underperform” rating in a research note on Monday, December 8th. Seven research analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $45.24.
Check Out Our Latest Stock Analysis on LUV
Southwest Airlines Price Performance
Shares of Southwest Airlines stock traded up $2.11 during midday trading on Monday, hitting $49.63. 12,957,930 shares of the company were exchanged, compared to its average volume of 10,376,670. 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 firm has a 50 day simple moving average of $40.71 and a 200-day simple moving average of $35.18. Southwest Airlines has a 52 week low of $23.82 and a 52 week high of $49.85. The firm has a market cap of $25.66 billion, a P/E ratio of 59.08, a PEG ratio of 0.37 and a beta of 1.15.
Southwest Airlines (NYSE:LUV – Get Free Report) last posted its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.02. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The business 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 firm earned $0.56 EPS. The firm’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 forecast that Southwest Airlines will post 1.55 earnings per share for the current year.
Institutional Investors Weigh In On Southwest Airlines
A number of institutional investors and hedge funds have recently modified their holdings of the company. Elevation Point Wealth Partners LLC acquired a new position in shares of Southwest Airlines during the 2nd quarter worth approximately $25,000. GHP Investment Advisors Inc. acquired a new position in shares of Southwest Airlines in the fourth quarter valued at about $26,000. Corsicana & Co. bought a new position in shares of Southwest Airlines during the third quarter worth approximately $27,000. Quent Capital LLC acquired a new position in Southwest Airlines in the 3rd quarter valued at $27,000. Finally, Optima Capital LLC acquired a new position in Southwest Airlines in the fourth quarter valued at about $27,000. 80.82% of the stock is owned by institutional investors.
Southwest Airlines News Roundup
Here are the key news stories impacting Southwest Airlines this week:
- Positive Sentiment: Large bullish options flow: traders bought ~52,057 call options on Monday (≈+94% vs. average), indicating aggressive short-term bullish positioning that can amplify upward price moves as market makers hedge.
- Positive Sentiment: Zacks is highlighting LUV across multiple lists (momentum, strong-buy, value, income), boosting retail/institutional interest and buy-side flow. Best Momentum Stocks to Buy for February 2nd Why Southwest Airlines (LUV) is a Top Momentum Stock for the Long-Term New Strong Buy Stocks for February 2nd
- Positive Sentiment: BMO Capital Markets upgraded LUV, which often triggers short-term buying from funds that follow broker/consensus ratings. Southwest Airlines (NYSE:LUV) Upgraded at BMO Capital Markets
- Positive Sentiment: Multiple price-target raises published overnight—several outlets raised LUV targets (examples include $32, $42, $55, $58)—creating headline momentum and validating the upgrade narrative. Price Target Raised to $32.00 Price Target Raised to $55.00 Price Target Raised to $42.00 Price Target Raised to $58.00
- Positive Sentiment: Analyst/commentary pieces pointing to a turnaround: Barchart notes LUV’s best day since 1978 and frames 2026 as a recovery year, and TipRanks highlights the company’s Q4 call signaling a profit shift for 2026—both reinforce the earnings/guidance story that supports higher valuations. This 1 Overlooked Airline Stock to Be the Best Bet on a Turnaround in 2026 Earnings Call Signals 2026 Profit Shift
- Neutral Sentiment: Operational/strategy coverage (seat overhaul) explores potential upside to unit revenue and customer loyalty but is longer-term and execution-dependent—worth watching but not an immediate catalyst. Seat Overhaul Tests Earnings Power
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.
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