Southwest Airlines (NYSE:LUV) Stock Rating Upgraded by UBS Group

Southwest Airlines (NYSE:LUV) was upgraded by equities research analysts at UBS Group from a “neutral” rating to a “buy” rating in a research note issued to investors on Tuesday,Finviz reports. The brokerage presently has a $73.00 target price on the airline’s stock. UBS Group’s target price indicates a potential upside of 42.96% from the company’s current price.

Other equities research analysts have also issued research reports about the company. Evercore upped their target price on Southwest Airlines from $40.00 to $45.00 and gave the company an “in-line” rating in a research report on Thursday, January 29th. Jefferies Financial Group boosted their price objective on Southwest Airlines from $45.00 to $48.00 and gave the company a “hold” rating in a report on Monday, February 2nd. Susquehanna lifted their price target on Southwest Airlines from $45.00 to $55.00 and gave the company a “neutral” rating in a research report on Tuesday, February 3rd. Wells Fargo & Company boosted their price target on Southwest Airlines from $45.00 to $50.00 and gave the company an “equal weight” rating in a report on Friday, January 30th. Finally, Zacks Research raised shares of Southwest Airlines from a “hold” rating to a “strong-buy” rating in a report on Friday, January 30th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $48.14.

Southwest Airlines Trading Up 0.5%

Shares of Southwest Airlines stock opened at $51.06 on Tuesday. The firm’s 50 day simple moving average is $44.34 and its two-hundred day simple moving average is $36.56. The firm has a market capitalization of $25.09 billion, a price-to-earnings ratio of 60.79, a PEG ratio of 0.36 and a beta of 1.15. Southwest Airlines has a 12-month low of $23.82 and a 12-month high of $54.70. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. The firm had revenue of $7.44 billion for the quarter, compared to analyst estimates of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The business’s quarterly revenue was up 7.4% compared to the same quarter last year. During the same period in the previous year, the company 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. Analysts predict that Southwest Airlines will post 1.55 EPS for the current year.

Hedge Funds Weigh In On Southwest Airlines

Several institutional investors have recently modified their holdings of the business. Elevation Point Wealth Partners LLC purchased a new stake in Southwest Airlines during the 2nd quarter worth about $25,000. GHP Investment Advisors Inc. acquired a new position in shares of Southwest Airlines during the fourth quarter worth about $26,000. Entrust Financial LLC purchased a new stake in shares of Southwest Airlines during the fourth quarter worth approximately $26,000. Los Angeles Capital Management LLC acquired a new stake in Southwest Airlines in the fourth quarter valued at approximately $26,000. Finally, Corsicana & Co. purchased a new position in Southwest Airlines in the third quarter worth approximately $27,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

About Southwest Airlines

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.