Southwest Airlines (NYSE:LUV) Price Target Raised to $58.00

Southwest Airlines (NYSE:LUV) had its price objective increased by stock analysts at Seaport Research Partners from $57.00 to $58.00 in a note issued to investors on Thursday,MarketScreener reports. Seaport Research Partners’ target price suggests a potential upside of 18.75% from the company’s previous close.

LUV has been the topic of a number of other reports. Barclays raised Southwest Airlines from an “equal weight” rating to an “overweight” rating and raised their price target for the company from $34.00 to $56.00 in a report on Tuesday, December 16th. Weiss Ratings reiterated a “hold (c)” rating on shares of Southwest Airlines in a research note on Monday, December 29th. Evercore ISI increased their price target on Southwest Airlines from $40.00 to $45.00 and gave the company an “in-line” rating in a research note on Thursday. BMO Capital Markets upgraded Southwest Airlines from a “market perform” rating to an “outperform” rating and upped their price objective for the company from $43.00 to $57.50 in a report on Friday. Finally, Citigroup boosted their price target on shares of Southwest Airlines from $38.00 to $44.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 7th. Seven investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $44.34.

Southwest Airlines Trading Up 0.7%

LUV traded up $0.34 during trading on Thursday, hitting $48.84. 1,080,334 shares of the company’s stock were exchanged, compared to its average volume of 9,528,477. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $49.85. The firm has a market cap of $25.26 billion, a P/E ratio of 57.99, a price-to-earnings-growth ratio of 0.37 and a beta of 1.16. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.52. The stock has a 50 day moving average price of $40.42 and a 200 day moving average price of $35.14.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.11% and a net margin of 1.57%.The business had revenue of $7.44 billion for the quarter, compared to analyst estimates of $7.51 billion. During the same period in the previous year, the company earned $0.56 earnings per share. The company’s revenue for the quarter 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. As a group, analysts expect that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Institutional Trading of Southwest Airlines

Institutional investors have recently bought and sold shares of the stock. Wealthfront Advisers LLC increased its position in shares of Southwest Airlines by 19.1% during the 4th quarter. Wealthfront Advisers LLC now owns 32,317 shares of the airline’s stock worth $1,336,000 after purchasing an additional 5,181 shares in the last quarter. M&T Bank Corp raised its stake in shares of Southwest Airlines by 9.4% in the fourth quarter. M&T Bank Corp now owns 92,569 shares of the airline’s stock valued at $3,827,000 after acquiring an additional 7,927 shares during the last quarter. Ashton Thomas Private Wealth LLC boosted its holdings in shares of Southwest Airlines by 3.0% in the 4th quarter. Ashton Thomas Private Wealth LLC now owns 19,513 shares of the airline’s stock worth $810,000 after acquiring an additional 572 shares in the last quarter. D.A. Davidson & CO. grew its position in Southwest Airlines by 6.9% during the 4th quarter. D.A. Davidson & CO. now owns 9,511 shares of the airline’s stock worth $393,000 after acquiring an additional 610 shares during the last quarter. Finally, Inscription Capital LLC bought a new position in Southwest Airlines in the 4th quarter valued at $218,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: Management raised FY‑2026 adjusted EPS guidance to at least $4.00 and described the company’s business transformation (assigned seating, bag/seat fees) as driving materially higher revenue and profits — the core catalyst for today’s rally. Press Release
• Positive Sentiment: Major analyst upgrades/price‑target raises contributed to the upside: Morgan Stanley moved to an “overweight” and lifted its target to $55, signaling confidence that the company can regain pre‑pandemic economics. Benzinga
• Positive Sentiment: BMO upgraded LUV from “market perform” to “outperform” and raised its target to $57.50, another bullish vote that likely supports buying interest. Benzinga TickerReport
• Positive Sentiment: Q4 results showed an EPS beat and improving operating metrics (EPS topped estimates; revenue growth and operating profit gains helped sentiment). Zacks: Q4 Results
• Neutral Sentiment: Other analysts raised targets modestly or kept in‑line ratings (Evercore ISI to $45 in‑line), reflecting mixed views on valuation despite the stronger outlook. AmericanBankingNews
• Neutral Sentiment: Street research roundups and transcripts are circulating (conference call/transcript coverage), helping investors re‑price LUV based on management commentary. 24/7 Wall St. roundup
• Negative Sentiment: Not all analysts are unequivocally bullish — Bank of America raised its target to $42 but kept an “underperform” stance, implying meaningful downside relative to current levels and signaling valuation/execution concerns. Benzinga
• Negative Sentiment: Management’s Q1 guidance (approx. $0.45) came in below consensus, indicating potential short‑term pressure even as full‑year guidance is strong — keep an eye on near‑term revenue/unit‑revenue trends. Press Release
• Negative Sentiment: Unusual options activity (spike in put purchases) suggests some investors are hedging or expressing near‑term caution, which can amplify volatility.

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.