Argus Cuts Southwest Airlines (NYSE:LUV) Price Target to $45.00

Key Points

• Argus cut its price target on Southwest to $45 from $55 while maintaining a "buy" rating, implying roughly a 15.9% upside from the current share price.
• Analysts are split: the consensus rating is "Hold" with an average price target of $44.31 and a breakdown of 9 Buys, 9 Holds and 4 Sells.
• Southwest reported Q1 EPS of $0.45 in line with estimates but revenue of $7.25B missed expectations, and management set Q2 guidance at $0.35–$0.65 EPS while warning that rising jet fuel could put full‑year guidance at risk.

Southwest Airlines (NYSE:LUV - Get Free Report) had its price objective lowered by equities research analysts at Argus from $55.00 to $45.00 in a research note issued on Friday,MarketScreener reports. The brokerage presently has a "buy" rating on the airline's stock. Argus' price target would indicate a potential upside of 15.93% from the stock's current price.

Several other brokerages have also recently commented on LUV. The Goldman Sachs Group dropped their price target on shares of Southwest Airlines from $32.00 to $30.00 and set a "sell" rating on the stock in a research report on Wednesday, April 1st. Raymond James Financial boosted their price target on shares of Southwest Airlines from $45.00 to $55.00 and gave the stock an "outperform" rating in a research report on Friday. Zacks Research cut shares of Southwest Airlines from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, March 11th. Evercore boosted their price objective on Southwest Airlines from $43.00 to $44.00 in a report on Friday. Finally, Morgan Stanley boosted their price objective on Southwest Airlines from $50.00 to $55.00 and gave the stock an "overweight" rating in a report on Friday, January 30th. Nine investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $44.31.

Southwest Airlines Price Performance

Southwest Airlines stock traded up $1.07 during midday trading on Friday, hitting $38.82. The company's stock had a trading volume of 1,166,324 shares, compared to its average volume of 9,628,876. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. The stock's 50-day moving average price is $42.96 and its 200-day moving average price is $40.14. Southwest Airlines has a 12 month low of $25.89 and a 12 month high of $55.11. The company has a market capitalization of $19.06 billion, a PE ratio of 25.06, a price-to-earnings-growth ratio of 0.44 and a beta of 1.19.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, hitting the consensus estimate of $0.45. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.30%. The firm had revenue of $7.25 billion for the quarter, compared to analysts' expectations of $8.46 billion. During the same period in the previous year, the business earned ($0.13) earnings per share. Southwest Airlines's revenue for the quarter was up 12.8% compared to the same quarter last year. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Analysts anticipate that Southwest Airlines will post 2.72 earnings per share for the current fiscal year.

Institutional Trading of Southwest Airlines

Institutional investors and hedge funds have recently modified their holdings of the company. Norges Bank acquired a new position in shares of Southwest Airlines during the fourth quarter worth approximately $172,038,000. Ameriprise Financial Inc. raised its stake in shares of Southwest Airlines by 43.7% in the third quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline's stock valued at $393,615,000 after purchasing an additional 3,753,183 shares in the last quarter. SG Americas Securities LLC raised its stake in shares of Southwest Airlines by 2,468.4% in the fourth quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline's stock valued at $155,085,000 after purchasing an additional 3,606,255 shares in the last quarter. Massachusetts Financial Services Co. MA acquired a new position in shares of Southwest Airlines in the fourth quarter valued at $143,450,000. Finally, Franklin Resources Inc. raised its stake in Southwest Airlines by 7.0% during the fourth quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline's stock worth $1,661,488,000 after acquiring an additional 2,626,853 shares in the last quarter. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Southwest Airlines News Roundup

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

• Positive Sentiment: Q1 showed tangible progress from Southwest’s turnaround: record first‑quarter passenger and unit revenues, stronger operating margin and $1.4B operating cash flow — evidence the commercial and cost initiatives are working. Read More.
• Positive Sentiment: Some analysts are upgrading/raising targets citing margin strength — Raymond James raised its price target on improved margins, supporting upside if fuel stabilizes. Read More.
• Neutral Sentiment: Q1 EPS came in roughly in line with consensus ($0.45), while revenue slightly beat estimates, so the underlying operations are improving but not dramatically surprising the Street. Read More.
• Negative Sentiment: Management set Q2 EPS guidance of $0.35–$0.65 (midpoint below consensus), and said updating FY guidance isn’t productive amid macro uncertainty — a clear near‑term earnings headwind. Read More.
• Negative Sentiment: Rising jet fuel is the main risk: management and the CEO expect higher jet fuel for the rest of the year and warned full‑year guidance is at risk, which compresses margins and could force further guidance cuts. Read More.
• Negative Sentiment: Some broker notes are mixed: HSBC upgraded LUV from Reduce to Hold but set a $36.10 target (below the recent price), highlighting divergent analyst views and potential near‑term downside from certain desks. Read More.
• Negative Sentiment: Market reaction has been negative after the quarter and the weaker Q2 guide — several outlets noted the stock fell following the results and guidance update. Read More.

About Southwest Airlines

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest's operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.

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