Southwest Airlines (NYSE:LUV) Price Target Raised to $60.00 at BMO Capital Markets

Key Points

• BMO Capital Markets raised its price target on Southwest Airlines to $60 from $58.50 and kept an outperform rating, implying about 32% upside from the current share price.
• Southwest’s stock was trading up on the day, and the broader analyst view remains mixed: the consensus rating is Hold with an average price target of $49.55, though several firms recently adjusted targets and ratings.
• The company recently posted strong Q2 results, beating earnings and revenue estimates, but its forward guidance disappointed as higher fuel costs pressured outlooks for Q3 and the full year.

Southwest Airlines (NYSE:LUV - Get Free Report) had its price objective hoisted by equities researchers at BMO Capital Markets from $58.50 to $60.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has an "outperform" rating on the airline's stock. BMO Capital Markets' target price suggests a potential upside of 32.01% from the stock's current price.

A number of other brokerages also recently commented on LUV. Susquehanna upped their target price on Southwest Airlines from $44.00 to $55.00 and gave the company a "neutral" rating in a report on Tuesday, July 7th. HSBC raised shares of Southwest Airlines from a "reduce" rating to a "hold" rating and lifted their target price for the company from $24.40 to $36.10 in a research note on Friday, April 24th. The Goldman Sachs Group increased their price target on shares of Southwest Airlines from $30.00 to $35.00 and gave the stock a "sell" rating in a research note on Thursday, July 2nd. Argus reduced their target price on Southwest Airlines from $55.00 to $45.00 and set a "buy" rating on the stock in a report on Friday, April 24th. Finally, Barclays raised their target price on Southwest Airlines from $56.00 to $65.00 and gave the company an "overweight" rating in a research note on Thursday, June 25th. Nine analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $49.55.

Southwest Airlines Trading Up 1.7%

Southwest Airlines stock traded up $0.74 during trading hours on Friday, reaching $45.45. The stock had a trading volume of 3,220,485 shares, compared to its average volume of 8,244,103. The company has a fifty day simple moving average of $45.88 and a 200-day simple moving average of $44.29. Southwest Airlines has a 52 week low of $28.98 and a 52 week high of $55.11. The stock 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 company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41.

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

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of LUV. Tema ETFs LLC grew its holdings in shares of Southwest Airlines by 9.3% during the second quarter. Tema ETFs LLC now owns 10,181 shares of the airline's stock valued at $524,000 after buying an additional 870 shares during the last quarter. Wealthcare Advisory Partners LLC purchased a new stake in Southwest Airlines during the 2nd quarter valued at $232,000. Paladin Wealth LLC increased its holdings in shares of Southwest Airlines by 16.1% in the 2nd quarter. Paladin Wealth LLC now owns 13,876 shares of the airline's stock worth $714,000 after purchasing an additional 1,920 shares in the last quarter. Everhart Financial Group Inc. purchased a new position in shares of Southwest Airlines in the second quarter worth $279,000. Finally, Valeo Financial Advisors LLC lifted its holdings in shares of Southwest Airlines by 21.8% during the second quarter. Valeo Financial Advisors LLC now owns 9,647 shares of the airline's stock valued at $496,000 after purchasing an additional 1,727 shares in the last quarter. 80.82% of the stock is owned by hedge funds and other institutional investors.

Key Southwest Airlines News

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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