Southwest Airlines (NYSE:LUV) Given New $45.00 Price Target at Raymond James Financial

Key Points

• Raymond James cut its price target on Southwest to $45 from $55 but kept an "outperform" rating, implying roughly an 18.2% upside from the current share price.
• Analyst coverage is mixed — eight Buys, eight Holds and four Sells — leaving a MarketBeat consensus rating of "Hold" with a consensus price target of about $44.94.
• Shares traded at $38.06; Southwest slightly beat EPS estimates ($0.58 vs. $0.56) while revenue missed, and the company set FY2026 guidance around $4.00 EPS (Q1 2026 about $0.45), versus analysts' current-year EPS expectation of ~1.55.

Southwest Airlines (NYSE:LUV - Get Free Report) had its target price decreased by investment analysts at Raymond James Financial from $55.00 to $45.00 in a research report issued on Tuesday,MarketScreener reports. The firm currently has an "outperform" rating on the airline's stock. Raymond James Financial's target price would suggest a potential upside of 18.22% from the stock's current price.

Other equities analysts have also recently issued research reports about the company. Rothschild & Co Redburn increased their target price on Southwest Airlines from $27.00 to $35.00 and gave the company a "sell" rating in a report on Thursday, March 5th. BMO Capital Markets raised Southwest Airlines from a "market perform" rating to an "outperform" rating and lifted their price target for the stock from $43.00 to $57.50 in a research note on Friday, January 30th. Jefferies Financial Group boosted their price target on Southwest Airlines from $41.00 to $42.00 and gave the stock a "hold" rating in a research report on Tuesday. JPMorgan Chase & Co. raised Southwest Airlines from an "underweight" rating to an "overweight" rating and increased their price objective for the company from $36.00 to $60.00 in a research note on Friday, January 9th. Finally, Deutsche Bank Aktiengesellschaft raised their price objective on Southwest Airlines from $40.00 to $48.00 and gave the company a "buy" rating in a report on Friday, December 12th. Eight investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Southwest Airlines presently has an average rating of "Hold" and a consensus price target of $44.94.

Southwest Airlines Price Performance

Shares of Southwest Airlines stock traded up $0.49 on Tuesday, reaching $38.06. The company's stock had a trading volume of 4,730,546 shares, compared to its average volume of 10,096,475. The company has a market capitalization of $18.69 billion, a P/E ratio of 45.31, a PEG ratio of 0.27 and a beta of 1.10. The stock has a 50-day moving average price of $45.80 and a 200-day moving average price of $39.36. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $55.11.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping analysts' consensus estimates of $0.56 by $0.02. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The company had revenue of $7.44 billion during the quarter, compared to analysts' expectations of $7.51 billion. During the same period in the prior year, the business posted $0.56 earnings per share. The firm's revenue for the quarter was up 7.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Analysts expect that Southwest Airlines will post 1.55 EPS for the current year.

Hedge Funds Weigh In On Southwest Airlines

A number of institutional investors have recently added to or reduced their stakes in LUV. Elevation Point Wealth Partners LLC acquired a new position in Southwest Airlines during the second quarter worth $25,000. SHP Wealth Management purchased a new stake in Southwest Airlines in the 4th quarter valued at $25,000. GHP Investment Advisors Inc. acquired a new stake in shares of Southwest Airlines in the 4th quarter worth $26,000. Entrust Financial LLC acquired a new stake in shares of Southwest Airlines in the 4th quarter worth $26,000. Finally, Los Angeles Capital Management LLC purchased a new position in shares of Southwest Airlines during the 4th quarter worth $26,000. 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.

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.