Southwest Airlines (NYSE:LUV) Given New $55.00 Price Target at Raymond James Financial

Key Points

• Raymond James raised its price target on Southwest to $55 from $45 and maintained an "outperform" rating, implying roughly a 41.7% upside from the prior close.
• Analyst views are mixed — the consensus is a "Hold" with an average price target of $44.31, and brokers are split with nine Buys, nine Holds and four Sells as some firms both raised and cut targets recently.
• Southwest's Q1 EPS of $0.45 matched estimates but revenue of $7.25B missed expectations, and management set Q2 guidance of $0.35–$0.65 while warning that rising jet fuel costs could put full‑year guidance at risk.

Southwest Airlines (NYSE:LUV - Get Free Report) had its target price increased by equities research analysts at Raymond James Financial from $45.00 to $55.00 in a report released on Friday,MarketScreener reports. The brokerage currently has an "outperform" rating on the airline's stock. Raymond James Financial's target price indicates a potential upside of 41.69% from the company's previous close.

Several other brokerages have also recently weighed in on LUV. Citigroup dropped their price target on shares of Southwest Airlines from $54.00 to $44.00 and set a "neutral" rating on the stock in a research note on Friday, March 20th. BMO Capital Markets dropped their price target on shares of Southwest Airlines from $57.50 to $45.00 and set an "outperform" rating on the stock in a research note on Tuesday, March 31st. Seaport Research Partners lifted their price target on shares of Southwest Airlines from $57.00 to $58.00 in a research note on Thursday, January 29th. Bank of America dropped their price target on shares of Southwest Airlines from $42.00 to $40.00 and set an "underperform" rating on the stock in a research note on Wednesday, April 1st. Finally, BNP Paribas Exane lifted their price target on shares of Southwest Airlines from $24.00 to $33.00 and gave the stock an "underperform" rating in a research note on Tuesday. Nine analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $44.31.

Southwest Airlines Stock Performance

Shares of Southwest Airlines stock traded up $1.07 on Friday, hitting $38.82. 1,166,324 shares of the company's stock were exchanged, compared to its average volume of 9,628,876. The company has a 50-day simple moving average of $42.96 and a 200-day simple moving average of $40.14. The stock has a market capitalization of $19.06 billion, a PE ratio of 25.06, a PEG ratio of 0.44 and a beta of 1.19. Southwest Airlines has a 1 year low of $25.89 and a 1 year high of $55.11. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52.

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

Institutional Trading of Southwest Airlines

A number of institutional investors and hedge funds have recently bought and sold shares of LUV. Norges Bank bought a new stake in shares of Southwest Airlines in the 4th quarter worth about $172,038,000. Ameriprise Financial Inc. boosted its stake in shares of Southwest Airlines by 43.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline's stock worth $393,615,000 after purchasing an additional 3,753,183 shares during the period. SG Americas Securities LLC boosted its stake 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 purchasing an additional 3,606,255 shares during the period. Massachusetts Financial Services Co. MA purchased a new position in shares of Southwest Airlines during the 4th quarter worth about $143,450,000. Finally, Franklin Resources Inc. boosted its stake in shares of Southwest Airlines by 7.0% during the 4th quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline's stock worth $1,661,488,000 after purchasing an additional 2,626,853 shares during the period. 80.82% of the stock is currently owned by institutional investors.

Key Stories Impacting Southwest Airlines

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.

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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