Southwest Airlines (NYSE:LUV) Stock Price Target Lowered at BMO Capital Markets

Key Points

• BMO Capital Markets lowered Southwest Airlines’ price target from $60 to $50 while maintaining an “outperform” rating, implying approximately 17% upside from the stock’s $42.71 price.
• Analyst sentiment is mixed: Southwest has an overall “Hold” consensus rating and an average price target of $48.01, based on nine Buy, ten Hold, and three Sell ratings.
• Southwest reported quarterly EPS of $0.94, exceeding the $0.52 consensus estimate, while revenue reached $8.72 billion and increased 16.4% year over year.

Southwest Airlines (NYSE:LUV - Get Free Report) had its price target cut by analysts at BMO Capital Markets from $60.00 to $50.00 in a research note issued to investors on Monday. The brokerage presently has an "outperform" rating on the airline's stock. BMO Capital Markets' price target indicates a potential upside of 17.07% from the stock's current price.

Other analysts have also recently issued research reports about the stock. Wall Street Zen cut shares of Southwest Airlines from a "buy" rating to a "hold" rating in a research report on Saturday, September 5th. Susquehanna boosted their price objective on Southwest Airlines from $44.00 to $55.00 and gave the company a "neutral" rating in a research note on Tuesday, July 7th. Evercore upped their target price on Southwest Airlines from $44.00 to $52.00 in a research report on Thursday, June 25th. UBS Group raised their target price on Southwest Airlines from $49.00 to $53.00 and gave the stock a "buy" rating in a research note on Thursday. Finally, Rothschild & Co Redburn upgraded Southwest Airlines from a "sell" rating to a "neutral" rating and lifted their target price for the stock from $35.00 to $40.00 in a report on Friday, September 18th. Nine investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, Southwest Airlines currently has an average rating of "Hold" and a consensus target price of $48.01.

Southwest Airlines Stock Up 0.1%

Southwest Airlines stock opened at $42.71 on Monday. The firm has a market cap of $20.89 billion, a price-to-earnings ratio of 26.20, a PEG ratio of 0.40 and a beta of 1.13. Southwest Airlines has a 52-week low of $29.26 and a 52-week high of $55.11. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.42 and a current ratio of 0.49. The firm has a 50 day moving average price of $42.60 and a two-hundred day moving average price of $42.66.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating analysts' consensus estimates of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The company had revenue of $8.72 billion for the quarter, compared to analyst estimates of $8.58 billion. During the same period in the prior year, the firm posted $0.43 EPS. The company's quarterly revenue was up 16.4% on a year-over-year basis. 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 predict that Southwest Airlines will post 3.27 EPS for the current year.

Hedge Funds Weigh In On Southwest Airlines

A number of institutional investors have recently modified their holdings of the company. SHP Wealth Management acquired a new stake in Southwest Airlines in the 4th quarter valued at $25,000. Archer Investment Corp acquired a new position in Southwest Airlines during the second quarter worth $32,000. Fiduciary Financial Advisors acquired a new position in Southwest Airlines during the second quarter worth $32,000. Scarborough Advisors LLC bought a new position in shares of Southwest Airlines in the first quarter valued at $28,000. Finally, Grove Bank & Trust lifted its stake in shares of Southwest Airlines by 109.4% in the second quarter. Grove Bank & Trust now owns 871 shares of the airline's stock valued at $45,000 after buying an additional 455 shares in the last quarter. 80.82% of the stock is owned by institutional investors and hedge funds.

Southwest Airlines Company Profile

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. Operating under the Southwest Airlines brand, the company provides scheduled air transportation for domestic and international travelers and also offers air cargo services.

Southwest was founded in 1967 and began commercial service in 1971, initially connecting Dallas, Houston and San Antonio. The airline expanded its network across the United States and now serves numerous destinations in the United States, Mexico, the Caribbean, Central America and other nearby international markets.

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