Susquehanna Issues Pessimistic Forecast for Southwest Airlines (NYSE:LUV) Stock Price

Key Points

• Susquehanna cut Southwest Airlines’ price target from $50 to $45 while maintaining a “neutral” rating, implying roughly 6% upside from the stock’s $42.44 price.
• Analyst sentiment is mixed but leans cautious: Southwest has an average “Hold” rating and a consensus price target of $47.45, with nine Buy, ten Hold, and three Sell ratings.
• Southwest exceeded quarterly expectations, reporting $0.94 in earnings per share versus the $0.52 consensus and $8.72 billion in revenue; institutional investors own 80.82% of the company.

Southwest Airlines (NYSE:LUV - Get Free Report) had its price objective cut by Susquehanna from $50.00 to $45.00 in a research report issued on Wednesday, Benzinga reports. The brokerage presently has a "neutral" rating on the airline's stock. Susquehanna's price target suggests a potential upside of 6.04% from the stock's current price.

LUV has been the topic of a number of other reports. Barclays lowered their price target on shares of Southwest Airlines from $65.00 to $58.00 and set an "overweight" rating on the stock in a research note on Friday, September 11th. Weiss Ratings raised shares of Southwest Airlines from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, August 18th. Morgan Stanley upped their target price on shares of Southwest Airlines from $60.00 to $65.00 and gave the stock an "overweight" rating in a research report on Monday, July 6th. Citigroup reduced their price target on shares of Southwest Airlines from $55.00 to $50.00 and set a "neutral" rating for the company in a research report on Friday, July 24th. Finally, Raymond James Financial dropped their price objective on Southwest Airlines from $60.00 to $54.00 and set an "outperform" rating for the company in a research note on Monday, August 24th. Nine investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, Southwest Airlines currently has an average rating of "Hold" and an average price target of $47.45.

Southwest Airlines Stock Up 1.4%

LUV opened at $42.44 on Wednesday. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. The business has a 50 day simple moving average of $41.97 and a 200-day simple moving average of $42.74. The stock has a market capitalization of $20.76 billion, a P/E ratio of 26.04, a P/E/G ratio of 0.39 and a beta of 1.16. Southwest Airlines has a 12 month low of $29.26 and a 12 month high of $55.11.

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

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. SHP Wealth Management purchased a new position in Southwest Airlines during the fourth quarter worth $25,000. Scarborough Advisors LLC acquired a new stake in shares of Southwest Airlines during the first quarter valued at $28,000. Fiduciary Financial Advisors purchased a new stake in Southwest Airlines during the 2nd quarter worth about $32,000. Archer Investment Corp acquired a new position in Southwest Airlines in the 2nd quarter valued at about $32,000. Finally, MidFirst Bank acquired a new position in Southwest Airlines in the 4th quarter valued at about $39,000. 80.82% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.