Southwest Airlines (NYSE:LUV) Stock Price Expected to Rise, Evercore Analyst Says

Key Points

• Evercore raised its price target on Southwest to $44 (from $43), implying about a 13.35% upsideHold and a consensus target near $44.31.
• Southwest reported Q1 EPS of $0.45 (in line) and revenue of $7.25B (up 12.8% year‑over‑year), but management set Q2 guidance of $0.35–$0.65 and warned that rising jet fuel costs could pressure margins and full‑year guidance.

Southwest Airlines (NYSE:LUV - Get Free Report) had its price target boosted by analysts at Evercore from $43.00 to $44.00 in a research note issued on Friday,MarketScreener reports. Evercore's price target points to a potential upside of 13.35% from the stock's previous close.

Several other analysts have also weighed in on LUV. Raymond James Financial decreased their price objective on Southwest Airlines from $55.00 to $45.00 and set an "outperform" rating on the stock in a report on Tuesday, March 31st. UBS Group decreased their price target on Southwest Airlines from $59.00 to $56.00 and set a "buy" rating on the stock in a research note on Monday, March 23rd. Rothschild & Co Redburn lifted their price objective on Southwest Airlines from $27.00 to $35.00 and gave the company a "sell" rating in a research report on Thursday, March 5th. Seaport Research Partners lifted their price objective on Southwest Airlines from $57.00 to $58.00 in a research report on Thursday, January 29th. Finally, BNP Paribas Exane boosted their target price on Southwest Airlines from $24.00 to $33.00 and gave the stock an "underperform" rating in a research report on Tuesday. Nine equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $44.31.

Southwest Airlines Stock Performance

Shares of NYSE:LUV traded up $1.07 during trading on Friday, hitting $38.82. 1,166,324 shares of the stock were exchanged, compared to its average volume of 9,628,876. Southwest Airlines has a 1-year low of $25.89 and a 1-year high of $55.11. The company has a market capitalization of $19.06 billion, a price-to-earnings ratio of 25.06, a price-to-earnings-growth ratio of 0.44 and a beta of 1.19. The company's fifty day simple moving average is $42.96 and its 200-day simple moving average is $40.14. 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 announced its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 earnings per share for the quarter, hitting the consensus estimate of $0.45. Southwest Airlines had a return on equity of 10.30% and a net margin of 2.83%.The company had revenue of $7.25 billion for the quarter, compared to analyst estimates of $8.46 billion. During the same quarter last year, the firm earned ($0.13) EPS. Southwest Airlines'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. Sell-side analysts expect that Southwest Airlines will post 2.72 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LUV. AQR Capital Management LLC grew its stake in Southwest Airlines by 100.6% in the first quarter. AQR Capital Management LLC now owns 39,347 shares of the airline's stock valued at $1,303,000 after acquiring an additional 19,729 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Southwest Airlines by 5.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline's stock valued at $2,050,000 after acquiring an additional 3,141 shares during the period. Empowered Funds LLC grew its stake in Southwest Airlines by 7.6% in the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline's stock valued at $250,000 after acquiring an additional 527 shares during the period. EverSource Wealth Advisors LLC grew its stake in Southwest Airlines by 73.4% in the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline's stock valued at $185,000 after acquiring an additional 2,408 shares during the period. Finally, First Trust Advisors LP grew its stake in Southwest Airlines by 47.4% in the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline's stock valued at $9,979,000 after acquiring an additional 98,986 shares during the period. 80.82% of the stock is owned by institutional investors and hedge funds.

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.

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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