JPMorgan Chase & Co. Has Lowered Expectations for Southwest Airlines (NYSE:LUV) Stock Price

Key Points

• JPMorgan Chase cut its price target on Southwest Airlines from $60 to $59, while keeping an overweight rating. The new target still implies about 29.8% upside from the prior close.
• Analyst views on Southwest remain mixed overall, with several firms recently adjusting targets and ratings. The stock currently has a consensus Hold rating and an average price target of $49.55.
• Southwest reported better-than-expected Q2 results, with EPS of $0.94 and revenue of $8.72 billion, but the company also reduced guidance as rising fuel costs weighed on outlook. Its Q3 EPS forecast and full-year EPS range both came in below prior expectations.

Southwest Airlines (NYSE:LUV - Get Free Report) had its target price cut by investment analysts at JPMorgan Chase & Co. from $60.00 to $59.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the airline's stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 29.81% from the company's previous close.

Several other equities research analysts have also recently commented on LUV. Evercore lifted their target price on Southwest Airlines from $44.00 to $52.00 in a research note on Thursday, June 25th. Susquehanna raised their price target on Southwest Airlines from $44.00 to $55.00 and gave the company a "neutral" rating in a report on Tuesday, July 7th. Jefferies Financial Group raised their target price on shares of Southwest Airlines from $44.00 to $50.00 and gave the company a "hold" rating in a research note on Wednesday, July 1st. Citigroup lowered their price target on shares of Southwest Airlines from $55.00 to $50.00 and set a "neutral" rating for the company in a research report on Friday. Finally, Raymond James Financial boosted their price target on shares of Southwest Airlines from $55.00 to $60.00 and gave the stock an "outperform" rating in a research note on Monday, July 6th. Nine research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $49.55.

Southwest Airlines Price Performance

Shares of NYSE LUV traded up $0.74 during midday trading on Friday, reaching $45.45. 3,220,485 shares of the company traded hands, compared to its average volume of 8,244,103. The firm has a market cap of $22.21 billion, a PE ratio of 27.89, a PEG ratio of 0.45 and a beta of 1.12. The stock's 50-day simple moving average is $45.88 and its 200-day simple moving average is $44.29. Southwest Airlines has a 12 month low of $28.98 and a 12 month high of $55.11. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, topping the consensus estimate of $0.52 by $0.42. The business had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a return on equity of 13.93% and a net margin of 2.78%.Southwest Airlines's revenue was up 16.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.43 EPS. 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, equities analysts anticipate that Southwest Airlines will post 3.23 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in LUV. SHP Wealth Management acquired a new stake in Southwest Airlines during the fourth quarter worth approximately $25,000. GHP Investment Advisors Inc. bought a new stake in shares of Southwest Airlines during the 4th quarter valued at $26,000. Entrust Financial LLC bought a new stake in shares of Southwest Airlines during the 4th quarter valued at $26,000. Los Angeles Capital Management LLC acquired a new stake in shares of Southwest Airlines during the 4th quarter worth $26,000. Finally, Optima Capital LLC acquired a new stake in shares of Southwest Airlines during the 4th quarter worth $27,000. Institutional investors own 80.82% of the company's stock.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Southwest beat Q2 expectations, reporting adjusted EPS of $0.94 versus $0.52 expected and revenue of $8.72 billion, with record quarterly revenues and strong margin expansion. Southwest Airlines Co (LUV) Q2 2026 Earnings Call Highlights: Record Revenues and Strong ...
• Positive Sentiment: Analyst sentiment improved in places, with Zacks upgrading LUV to Buy and Barclays keeping its Buy rating, which supports the longer-term outlook. Barclays Keeps Their Buy Rating on Southwest Airlines (LUV)
• Neutral Sentiment: Southwest used a Jones Act waiver to charter fuel by ship from Texas to California, highlighting active supply-chain management as jet fuel markets remain volatile. Southwest Airlines put Texas jet fuel on a boat to LA for the first time amid supply worries
• Neutral Sentiment: Citigroup lowered its price target on Southwest to $50 from $55 and kept a Neutral rating, signaling caution but still implying some upside from recent levels.
• Negative Sentiment: Guidance disappointed: Southwest’s Q3 EPS outlook of $0.50 to $0.75 came in below Wall Street expectations, and the company also cut its full-year forecast to $3.25 to $4.25 as fuel expenses rose sharply. Fuel swings turn US airline earnings forecasts into moving targets
• Negative Sentiment: Higher jet fuel prices are a broad industry headwind, and Southwest specifically said fuel costs increased by about $889 million, pressuring profit despite strong demand. Southwest Airlines profit jumps 9% as passengers pick up fuel tab, but third-quarter forecast falls short

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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