Southwest Airlines (NYSE:LUV) Price Target Raised to $47.00 at TD Cowen

Key Points

• TD Cowen raised its price target on Southwest to $47 (from $46) and kept a "buy" rating, implying about an 18.9% upside from the prior close.
• Analyst sentiment is mixed—nine Buy, nine Hold and four Sell—giving a consensus rating of Hold with an average price target of $44.36, while firms like Morgan Stanley and Raymond James have lifted targets to $55 and Bank of America cut its target to $40.
• In the latest quarter Southwest reported EPS of $0.45 (in line) but missed revenue at $7.25B versus $8.46B expected, and set Q2 2026 guidance of $0.35–$0.65 EPS.

Southwest Airlines (NYSE:LUV - Get Free Report) had its price objective increased by TD Cowen from $46.00 to $47.00 in a note issued to investors on Monday,MarketScreener reports. The brokerage presently has a "buy" rating on the airline's stock. TD Cowen's target price would suggest a potential upside of 18.93% from the company's previous close.

LUV has been the topic of several other research reports. Bank of America dropped their target price on shares of Southwest Airlines from $42.00 to $40.00 and set an "underperform" rating on the stock in a report on Wednesday, April 1st. Morgan Stanley increased their price target on Southwest Airlines from $50.00 to $55.00 and gave the company an "overweight" rating in a report on Friday, January 30th. Wall Street Zen downgraded Southwest Airlines from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Raymond James Financial lifted their price objective on Southwest Airlines from $45.00 to $55.00 and gave the stock an "outperform" rating in a report on Friday. Finally, UBS Group reduced their price objective on Southwest Airlines from $59.00 to $56.00 and set a "buy" rating for the company in a research report on Monday, March 23rd. Nine investment 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's stock. Based on data from MarketBeat, Southwest Airlines has a consensus rating of "Hold" and a consensus price target of $44.36.

Southwest Airlines Price Performance

NYSE LUV opened at $39.52 on Monday. Southwest Airlines has a one year low of $26.26 and a one year high of $55.11. The stock has a 50-day moving average of $42.72 and a 200 day moving average of $40.30. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48. The company has a market capitalization of $19.32 billion, a price-to-earnings ratio of 25.52, a PEG ratio of 0.44 and a beta of 1.19.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.45. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The business had revenue of $7.25 billion for the quarter, compared to analysts' expectations of $8.46 billion. During the same quarter in the prior year, the business earned ($0.13) EPS. The business's revenue for the quarter was up 12.8% compared to the same quarter last year. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. On average, sell-side analysts forecast that Southwest Airlines will post 2.76 EPS for the current year.

Institutional Trading of Southwest Airlines

Several hedge funds have recently bought and sold shares of the stock. MCF Advisors LLC raised its stake in shares of Southwest Airlines by 28.5% in the fourth quarter. MCF Advisors LLC now owns 915 shares of the airline's stock worth $38,000 after buying an additional 203 shares during the period. World Investment Advisors increased its holdings in Southwest Airlines by 1.0% in the 4th quarter. World Investment Advisors now owns 21,148 shares of the airline's stock worth $843,000 after acquiring an additional 210 shares in the last quarter. Parkside Financial Bank & Trust increased its holdings in Southwest Airlines by 7.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline's stock worth $127,000 after acquiring an additional 213 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC raised its stake in Southwest Airlines by 1.5% during the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline's stock worth $682,000 after acquiring an additional 235 shares during the period. Finally, Transcend Capital Advisors LLC raised its stake in Southwest Airlines by 4.2% during the 4th quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline's stock worth $278,000 after acquiring an additional 272 shares during the period. 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.