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

Key Points

• TD Cowen lowered Southwest Airlines’ price target from $48 to $47 but maintained a “buy” rating, implying 11.42% potential upside from the previous close.
• Analyst sentiment is mixed, with nine buy, ten hold, and three sell ratings; the consensus rating is “Hold” and the average price target is $47.95.
• Southwest shares rose 0.8% to $42.18, while the company’s latest quarterly earnings beat expectations with $0.94 in EPS versus the $0.52 consensus estimate.

Southwest Airlines (NYSE:LUV - Get Free Report) had its price objective reduced by equities research analysts at TD Cowen from $48.00 to $47.00 in a report issued on Friday, Benzinga reports. The firm currently has a "buy" rating on the airline's stock. TD Cowen's price target indicates a potential upside of 11.42% from the stock's previous close.

LUV has been the topic of several other research reports. Wall Street Zen downgraded shares of Southwest Airlines from a "buy" rating to a "hold" rating in a report on Saturday, September 5th. Barclays reduced their price objective on shares of Southwest Airlines from $65.00 to $58.00 and set an "overweight" rating for the company in a report on Friday, September 11th. Wells Fargo & Company boosted their target price on shares of Southwest Airlines from $44.00 to $50.00 and gave the stock an "equal weight" rating in a research report on Tuesday, June 30th. Evercore upped their target price on shares of Southwest Airlines from $44.00 to $52.00 in a report on Thursday, June 25th. Finally, Morgan Stanley raised their price target 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 analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $47.95.

Southwest Airlines Stock Up 0.8%

NYSE:LUV traded up $0.34 on Friday, hitting $42.18. The stock had a trading volume of 877,147 shares, compared to its average volume of 7,455,841. The business's fifty day moving average is $42.17 and its 200 day moving average is $42.70. The company has a market cap of $20.64 billion, a PE ratio of 25.91, a P/E/G ratio of 0.39 and a beta of 1.16. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.54. Southwest Airlines has a 52 week low of $29.26 and a 52 week high of $55.11.

Southwest Airlines (NYSE:LUV - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating the consensus estimate of $0.52 by $0.42. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.The firm had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. During the same quarter in the previous year, the company posted $0.43 earnings per share. 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. On average, equities research analysts expect that Southwest Airlines will post 3.27 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. SHP Wealth Management purchased a new position in shares of Southwest Airlines in the 4th quarter worth approximately $25,000. Archer Investment Corp purchased a new stake in shares of Southwest Airlines during the second quarter valued at approximately $32,000. Fiduciary Financial Advisors purchased a new stake in shares of Southwest Airlines during the second quarter valued at approximately $32,000. Scarborough Advisors LLC bought a new stake in Southwest Airlines during the first quarter worth $28,000. Finally, Grove Bank & Trust boosted its position in Southwest Airlines by 109.4% in the second quarter. Grove Bank & Trust now owns 871 shares of the airline's stock worth $45,000 after purchasing an additional 455 shares during the last quarter. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

About Southwest Airlines

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.

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