UBS Group Issues Positive Forecast for Southwest Airlines (NYSE:LUV) Stock Price

Key Points

• UBS Group raised Southwest Airlines’ price target from $49 to $53 and maintained a “buy” rating, implying 29.22% upside from the prior close.
• Analyst sentiment remains mixed: nine analysts rate the stock a buy, ten hold, and three sell, producing an average “hold” rating and a consensus price target of $48.51.
• Southwest reported quarterly EPS of $0.94, exceeding the $0.52 consensus estimate, while revenue reached $8.72 billion, up 16.4% year over year; institutional investors own 80.82% of the stock.

Southwest Airlines (NYSE:LUV - Get Free Report) had its target price boosted by equities researchers at UBS Group from $49.00 to $53.00 in a report issued on Thursday. The brokerage presently has a "buy" rating on the airline's stock. UBS Group's target price would indicate a potential upside of 29.22% from the stock's previous close.

LUV has been the subject of several other research reports. Weiss Ratings raised Southwest Airlines from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, August 18th. Wall Street Zen cut shares of Southwest Airlines from a "buy" rating to a "hold" rating in a report on Saturday, September 5th. Bank of America upped their target price on Southwest Airlines from $40.00 to $45.00 and gave the stock an "underperform" rating in a research report on Wednesday, July 1st. Rothschild & Co Redburn upgraded Southwest Airlines from a "sell" rating to a "neutral" rating and increased their price objective for the stock from $35.00 to $40.00 in a report on Friday, September 18th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Southwest Airlines from $60.00 to $59.00 and set an "overweight" rating for the company in a report on Friday, July 24th. Nine research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $48.51.

Southwest Airlines Price Performance

NYSE:LUV opened at $41.02 on Thursday. Southwest Airlines has a 52-week low of $29.26 and a 52-week high of $55.11. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.54. The firm has a market cap of $20.06 billion, a P/E ratio of 25.16, a PEG ratio of 0.39 and a beta of 1.13. The business's 50-day moving average price is $42.86 and its 200 day moving average price is $42.66.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its earnings results 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 during the quarter, compared to analysts' expectations of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. During the same period last year, the firm posted $0.43 earnings per share. The firm's revenue for the quarter was up 16.4% compared to the same quarter last year. 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. As a group, sell-side analysts predict that Southwest Airlines will post 3.28 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Southwest Airlines

A number of institutional investors have recently added to or reduced their stakes in the stock. Primecap Management Co. CA bought a new position in Southwest Airlines in the 2nd quarter valued at $2,509,179,000. Franklin Resources Inc. increased its position in Southwest Airlines by 7.0% in the 4th quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline's stock valued at $1,661,488,000 after acquiring an additional 2,626,853 shares in the last quarter. BlackRock Inc. acquired a new stake in Southwest Airlines in the 2nd quarter valued at about $1,538,382,000. Bank of New York Mellon Corp bought a new position in shares of Southwest Airlines in the second quarter worth about $234,872,000. Finally, Dimensional Fund Advisors LP raised its stake in shares of Southwest Airlines by 2.1% in the first quarter. Dimensional Fund Advisors LP now owns 5,763,154 shares of the airline's stock worth $216,472,000 after acquiring an additional 117,833 shares during the last quarter. 80.82% of the stock is owned by institutional investors and hedge funds.

About Southwest Airlines

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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