Southwest Airlines Co. (NYSE:LUV) Stock Has Consensus Target Price of $48.20 According to Analysts

Key Points

• Analysts rate Southwest a consensus “Hold,” with 11 buy, 9 hold and 3 sell recommendations among 23 analysts. The average one-year price target is $48.20, versus a reported share price of $44.46.
• Southwest beat quarterly expectations, reporting EPS of $0.66 versus $0.57 expected and revenue of $8.42 billion, up 21.2% year over year. Stronger fares and record unit revenue supported results, while higher fuel costs pressured margins.
• Fuel costs and execution risks remain concerns: analysts have lowered some longer-term earnings estimates, raising questions about whether revenue growth will translate consistently into profits.

Southwest Airlines Co. (NYSE:LUV - Get Free Report) has been given a consensus rating of "Hold" by the twenty-three analysts that are currently covering the company, Marketbeat Ratings reports. Three analysts have rated the stock with a sell recommendation, nine have given a hold recommendation and eleven have given a buy recommendation to the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $48.20.

LUV has been the subject of a number of analyst reports. JPMorgan Chase & Co. reduced their price target on Southwest Airlines from $59.00 to $58.00 and set an "overweight" rating for the company in a research report on Friday, October 23rd. Citigroup lowered their price target on Southwest Airlines from $55.00 to $50.00 and set a "neutral" rating for the company in a report on Friday, July 24th. Weiss Ratings upgraded shares of Southwest Airlines from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, October 23rd. Zacks Research raised Southwest Airlines from a "strong sell" rating to a "hold" rating in a research report on Wednesday. Finally, Raymond James Financial dropped their price objective on Southwest Airlines from $60.00 to $54.00 and set an "outperform" rating on the stock in a research note on Monday, August 24th.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Southwest’s third-quarter revenue rose 21.2%, supported by stronger fares and record unit revenue. The company also reported improving profitability and cash flow, though higher fuel costs limited margin momentum. Southwest Q3 Revenue Surges While Fuel Costs Test Margin Momentum
• Positive Sentiment: Zacks Research upgraded its rating on LUV from “strong sell” to “hold,” a modest improvement in analyst sentiment. Zacks Research rating update
• Neutral Sentiment: Falling oil prices may provide some relief to airline fuel expenses, but the cited article discusses travel stocks broadly rather than a specific Southwest catalyst. 3 Consumer And Travel Stocks To Watch As Oil Falls And The Dollar Softens
• Negative Sentiment: Fuel-cost pressure, execution risks and valuation concerns temper the growth story. Zacks Research also cut several earnings estimates, including FY2026 and FY2027, despite raising some quarterly projections—suggesting uncertainty about how consistently revenue growth will translate into profits. Is LUV Stock Worth Buying as Growth Outruns Execution Risks?

Hedge Funds Weigh In On Southwest Airlines

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LUV. Primecap Management Co. CA acquired a new position in shares of Southwest Airlines in the second quarter valued at approximately $2,509,179,000. BlackRock Inc. bought a new position in shares of Southwest Airlines during the 2nd quarter worth approximately $1,538,382,000. Bank of New York Mellon Corp acquired a new position in Southwest Airlines during the second quarter worth about $234,872,000. Hsbc Holdings PLC bought a new stake in Southwest Airlines in the second quarter valued at $46,295,000. Finally, Legal & General Group Plc purchased a new stake in Southwest Airlines during the second quarter valued at about $38,069,000. Institutional investors and hedge funds own 80.82% of the company's stock.

Southwest Airlines Price Performance

LUV stock opened at $44.46 on Friday. Southwest Airlines has a 52-week low of $30.84 and a 52-week high of $55.11. The company has a quick ratio of 0.40, a current ratio of 0.47 and a debt-to-equity ratio of 0.51. The stock has a market capitalization of $21.77 billion, a price-to-earnings ratio of 21.37, a price-to-earnings-growth ratio of 0.64 and a beta of 1.23. The stock's fifty day simple moving average is $41.16 and its 200-day simple moving average is $43.54.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its quarterly earnings data on Wednesday, October 21st. The airline reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.57 by $0.09. Southwest Airlines had a net margin of 3.34% and a return on equity of 18.05%. The company had revenue of $8.42 billion for the quarter, compared to the consensus estimate of $8.25 billion. During the same quarter in the previous year, the firm posted $0.11 EPS. The business's revenue was up 21.2% compared to the same quarter last year. Equities research analysts expect that Southwest Airlines will post 2.78 EPS for the current year.

About Southwest Airlines

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.

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.