Susquehanna Has Lowered Expectations for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price target dropped by investment analysts at Susquehanna from $50.00 to $45.00 in a research note issued on Wednesday, Benzinga reports. The firm currently has a “neutral” rating on the airline’s stock. Susquehanna’s target price would indicate a potential upside of 8.67% from the stock’s current price.

A number of other equities analysts also recently weighed in on LUV. UBS Group upped their price target on Southwest Airlines from $49.00 to $53.00 and gave the stock a “buy” rating in a research report on Thursday, September 24th. Evercore lifted their price objective on shares of Southwest Airlines from $44.00 to $52.00 in a report on Thursday, June 25th. Zacks Research raised shares of Southwest Airlines from a “strong sell” rating to a “hold” rating in a research report on Thursday, June 25th. Rothschild & Co Redburn upgraded shares of Southwest Airlines from a “sell” rating to a “neutral” rating and increased their target price for the stock from $35.00 to $40.00 in a report on Friday, September 18th. Finally, Morgan Stanley raised their target price on shares of Southwest Airlines from $60.00 to $65.00 and gave the company an “overweight” rating in a research report on Monday, July 6th. Nine research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $47.45.

Southwest Airlines Stock Performance

LUV opened at $41.41 on Wednesday. The business’s 50-day moving average price is $41.83 and its two-hundred day moving average price is $42.76. Southwest Airlines has a 1 year low of $29.26 and a 1 year high of $55.11. The company has a market capitalization of $20.26 billion, a price-to-earnings ratio of 25.41, a P/E/G ratio of 0.41 and a beta of 1.16. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.42. The company had revenue of $8.72 billion during the quarter, compared to analysts’ expectations of $8.58 billion. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.Southwest Airlines’s revenue for the quarter was up 16.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.43 earnings per share. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. Equities analysts expect that Southwest Airlines will post 3.13 EPS for the current fiscal year.

Institutional Investors Weigh In On Southwest Airlines

A number of institutional investors and hedge funds have recently made changes to their positions in LUV. QRG Capital Management Inc. boosted its holdings in shares of Southwest Airlines by 8.0% in the 2nd quarter. QRG Capital Management Inc. now owns 35,341 shares of the airline’s stock valued at $1,817,000 after buying an additional 2,632 shares during the last quarter. Envestnet Asset Management Inc. increased its holdings in Southwest Airlines by 12.2% during the second quarter. Envestnet Asset Management Inc. now owns 718,567 shares of the airline’s stock worth $36,949,000 after buying an additional 77,989 shares during the last quarter. WINTON GROUP Ltd raised its position in Southwest Airlines by 218.8% during the second quarter. WINTON GROUP Ltd now owns 93,837 shares of the airline’s stock worth $4,825,000 after acquiring an additional 64,402 shares in the last quarter. Engineers Gate Manager LP raised its position in Southwest Airlines by 75.1% during the second quarter. Engineers Gate Manager LP now owns 814,820 shares of the airline’s stock worth $41,898,000 after acquiring an additional 349,394 shares in the last quarter. Finally, RFG Advisory LLC lifted its stake in Southwest Airlines by 8.7% in the second quarter. RFG Advisory LLC now owns 22,992 shares of the airline’s stock valued at $1,182,000 after acquiring an additional 1,836 shares during the last quarter. Institutional investors own 80.82% of the company’s stock.

More Southwest Airlines News

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

• Positive Sentiment: Analysts raised several EPS forecasts. Zacks increased its estimates for Q3 and Q4 2026, FY2026, FY2027 and FY2028. Its FY2026 forecast rose to $3.31 from $3.29, while FY2028 increased to $5.90 from $5.83. These revisions suggest expectations for improving profitability, although Zacks still rates the shares “Strong Sell.” MarketBeat Southwest Airlines analyst estimates
• Positive Sentiment: Susquehanna’s $45 price target implies potential upside. The firm retained a Neutral rating but reduced its target from $50, indicating limited conviction despite a valuation above the current trading level. Susquehanna Southwest Airlines price target
• Positive Sentiment: Southwest is exploring international expansion. The carrier is reportedly leaning toward Boeing’s 787 Dreamliner as its first widebody aircraft, potentially enabling long-haul international routes and opening a new growth avenue. Reuters Southwest Boeing 787 report
• Neutral Sentiment: New digital marketing and AI initiatives—including flight planning through ChatGPT and a rewards-focused notification campaign—could improve customer engagement, but their direct financial impact is not yet clear. Southwest Airlines ChatGPT flight planning
• Negative Sentiment: Zacks downgraded LUV to “Strong Sell” and named Southwest its Bear of the Day, citing fuel-price risk and concerns that earnings growth may not translate into stock gains. Zacks Southwest Airlines Bear of the Day
• Negative Sentiment: Analyst caution remains widespread. Bank of America reaffirmed its Sell rating, while Citi maintained Hold and Susquehanna lowered its price target. Rising oil prices and short-selling activity are adding further pressure to airline shares. Bank of America Southwest Airlines rating

Southwest Airlines Company Profile

Southwest Airlines Co is a U.S. commercial airline headquartered in Dallas, Texas, and listed on the New York Stock Exchange under the symbol LUV. The company was founded in 1967 and began operating scheduled passenger service in 1971, initially serving cities in Texas before expanding across the United States.

Southwest primarily provides scheduled air transportation for passengers and also offers air cargo services. Its operations are centered on a large Boeing 737 fleet, supporting frequent service between major cities and regional airports.