BNP Paribas Exane Issues Positive Forecast for Southwest Airlines (NYSE:LUV) Stock Price

Key Points

• BNP Paribas Exane raised its price target on Southwest to $33 (from $24) but kept an underperform rating, implying about a 21% downside from the current price.
• Analysts are mixed—8 Buy, 8 Hold and 4 Sell—with a consensus rating of Hold and a consensus price target of $44.22, higher than BNP Paribas Exane’s target.
• Southwest recently reported a slight EPS beat, opened Tuesday at $41.77, has a market cap of about $20.5B and has set FY2026 guidance around ~$4.00 EPS (Q1 ~$0.45).

Southwest Airlines (NYSE:LUV - Get Free Report) had its price objective hoisted by BNP Paribas Exane from $24.00 to $33.00 in a research note issued to investors on Tuesday,MarketScreener reports. The firm presently has an "underperform" rating on the airline's stock. BNP Paribas Exane's price target suggests a potential downside of 21.00% from the company's current price.

Other analysts have also recently issued reports about the company. Morgan Stanley lifted their price target on Southwest Airlines from $50.00 to $55.00 and gave the stock an "overweight" rating in a report on Friday, January 30th. Rothschild & Co Redburn increased their price objective on Southwest Airlines from $27.00 to $35.00 and gave the stock a "sell" rating in a research report on Thursday, March 5th. TD Cowen dropped their target price on Southwest Airlines from $56.00 to $46.00 and set a "buy" rating for the company in a report on Thursday, April 2nd. Susquehanna reduced their target price on shares of Southwest Airlines from $55.00 to $42.00 and set a "neutral" rating for the company in a research report on Thursday, April 2nd. Finally, JPMorgan Chase & Co. lowered their price target on shares of Southwest Airlines from $58.00 to $56.00 in a research report on Friday, March 27th. Eight analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $44.22.

Southwest Airlines Stock Down 0.1%

LUV stock opened at $41.77 on Tuesday. The business's 50 day simple moving average is $43.72 and its 200 day simple moving average is $40.10. Southwest Airlines has a 1-year low of $24.07 and a 1-year high of $55.11. The firm has a market capitalization of $20.51 billion, a PE ratio of 49.66, a PEG ratio of 0.48 and a beta of 1.19. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57.

Southwest Airlines (NYSE:LUV - Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, beating the consensus estimate of $0.56 by $0.02. The firm had revenue of $7.44 billion for the quarter, compared to the consensus estimate of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The company's quarterly revenue was up 7.4% on a year-over-year basis. During the same period in the previous year, the company earned $0.56 earnings per share. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, research analysts anticipate that Southwest Airlines will post 2.72 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of LUV. Norges Bank purchased a new stake in shares of Southwest Airlines in the fourth quarter valued at about $172,038,000. Ameriprise Financial Inc. increased its stake in Southwest Airlines by 43.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline's stock valued at $393,615,000 after buying an additional 3,753,183 shares during the last quarter. SG Americas Securities LLC lifted its position in shares of Southwest Airlines by 2,468.4% during the 4th quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline's stock worth $155,085,000 after buying an additional 3,606,255 shares in the last quarter. Massachusetts Financial Services Co. MA purchased a new position in shares of Southwest Airlines in the 4th quarter worth approximately $143,450,000. Finally, Franklin Resources Inc. increased its position in shares of Southwest Airlines by 7.0% during the fourth 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 during the last quarter. Hedge funds and other institutional investors own 80.82% of the company's stock.

Southwest Airlines Company Profile

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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