Southwest Airlines (NYSE:LUV) Price Target Lowered to $42.00 at Susquehanna

Southwest Airlines (NYSE:LUV) had its target price lowered by equities researchers at Susquehanna from $55.00 to $42.00 in a note issued to investors on Thursday,MarketScreener reports. The firm currently has a “neutral” rating on the airline’s stock. Susquehanna’s target price indicates a potential upside of 16.67% from the company’s current price.

A number of other equities analysts have also weighed in on the stock. Citigroup dropped their target price on shares of Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating for the company in a research report on Friday, March 20th. Seaport Research Partners raised their price objective on Southwest Airlines from $57.00 to $58.00 in a research report on Thursday, January 29th. BNP Paribas Exane lifted their target price on Southwest Airlines from $19.00 to $24.00 and gave the stock an “underperform” rating in a report on Monday, December 8th. The Goldman Sachs Group dropped their price target on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating for the company in a research note on Wednesday. Finally, Barclays upgraded 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. Eight equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $43.72.

Southwest Airlines Stock Down 5.8%

Shares of Southwest Airlines stock opened at $36.00 on Thursday. The company’s 50 day moving average price is $45.70 and its 200-day moving average price is $39.36. The stock has a market capitalization of $17.68 billion, a price-to-earnings ratio of 42.86, a P/E/G ratio of 0.27 and a beta of 1.10. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $55.11.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.02. The firm had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The business’s revenue was up 7.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.56 earnings per share. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Equities research analysts forecast that Southwest Airlines will post 1.55 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. SHP Wealth Management purchased a new stake in shares of Southwest Airlines in the fourth quarter valued at about $25,000. GHP Investment Advisors Inc. acquired a new stake in shares of Southwest Airlines during the 4th quarter worth about $26,000. Entrust Financial LLC acquired a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $26,000. Los Angeles Capital Management LLC purchased a new position in shares of Southwest Airlines during the fourth quarter valued at approximately $26,000. Finally, Optima Capital LLC purchased a new stake in Southwest Airlines in the 4th quarter worth approximately $27,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines News Summary

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

• Positive Sentiment: Jefferies raised its price target slightly to $42 (from $41) and kept a Hold rating — a modest supportive datapoint amid broader cuts. Read More.
• Positive Sentiment: Bank of America research flagged that, while higher fuel costs are pressuring airlines, strong travel demand and the ability to raise fares could offset some margin pressure — a demand-side cushion for LUV. Read More.
• Neutral Sentiment: UBS trimmed its price target to $56 from $59 but reiterated a Buy — a modest downgrade in upside but still positive relative to many other firms’ notes. Read More.
• Negative Sentiment: BMO cut its price target to $45 from $57.50 (while keeping an Outperform rating) — a notable reduction in implied upside that weighs on sentiment. Read More.
• Negative Sentiment: Raymond James trimmed its target to $45 from $55 (maintaining Outperform) — another materially lower PT from a previously bullish level. Read More.
• Negative Sentiment: Goldman Sachs cut its target to $30 (from $32) and kept a Sell rating — a strong negative signal from a major house that increases downside risk. Read More.
• Negative Sentiment: Bank of America lowered its PT to $40 (from $42) and maintained an Underperform rating — another downgrade adding pressure. Read More.
• Negative Sentiment: Broader industry concerns — including the Iran conflict raising costs and expectations of higher overheads and lower margins for carriers — are pressuring investor appetite for airline stocks. Read More.

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.