TD Cowen Lowers Southwest Airlines (NYSE:LUV) Price Target to $55.00

Key Points

• TD Cowen cut its price target on Southwest from $66 to $55 but kept a Buy rating, implying roughly a 33.6% upside from the current share price.
• The analyst consensus is a Hold with an average price target of $47.71, and the street breakdown shows 1 Strong Buy, 8 Buy, 8 Hold and 4 Sell ratings.
• Most recent quarter: Southwest slightly beat EPS estimates ($0.58 vs $0.56) while missing revenue ($7.44B vs $7.51B) and issued guidance of about $4.00 FY2026 EPS and ~$0.45 for Q1 2026.

Southwest Airlines (NYSE:LUV - Get Free Report) had its price target reduced by analysts at TD Cowen from $66.00 to $55.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm presently has a "buy" rating on the airline's stock. TD Cowen's price target suggests a potential upside of 33.59% from the company's current price.

A number of other research analysts have also commented on LUV. Bank of America upped their price objective on Southwest Airlines from $37.00 to $42.00 and gave the company an "underperform" rating in a report on Friday, January 30th. The Goldman Sachs Group boosted their target price on shares of Southwest Airlines from $29.00 to $32.00 and gave the company a "sell" rating in a research report on Friday, January 30th. Wells Fargo & Company upped their price target on shares of Southwest Airlines from $45.00 to $50.00 and gave the company an "equal weight" rating in a research note on Friday, January 30th. Rothschild & Co Redburn lifted their price objective on shares of Southwest Airlines from $27.00 to $35.00 and gave the stock a "sell" rating in a research note on Thursday. Finally, Seaport Research Partners increased their target price on shares of Southwest Airlines from $57.00 to $58.00 in a research report on Thursday, January 29th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eight have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $47.71.

Southwest Airlines Stock Performance

Southwest Airlines stock traded down $0.39 during trading hours on Monday, hitting $41.17. The company had a trading volume of 6,952,189 shares, compared to its average volume of 10,490,429. The firm has a 50-day moving average of $46.70 and a 200 day moving average of $38.44. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45. The firm has a market cap of $20.23 billion, a PE ratio of 49.01, a PEG ratio of 0.29 and a beta of 1.10. Southwest Airlines has a one year low of $23.82 and a one year high of $55.11.

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

Institutional Investors Weigh In On Southwest Airlines

Several institutional investors and hedge funds have recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership raised its position in shares of Southwest Airlines by 2,403.8% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline's stock valued at $328,305,000 after buying an additional 9,716,160 shares in the last quarter. Norges Bank acquired a new stake in shares of Southwest Airlines during the 4th quarter worth approximately $172,038,000. Ameriprise Financial Inc. increased its stake in Southwest Airlines by 43.7% in the third quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline's stock valued at $393,615,000 after acquiring an additional 3,753,183 shares during the last quarter. SG Americas Securities LLC increased its stake in Southwest Airlines by 2,468.4% in the fourth quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline's stock valued at $155,085,000 after acquiring an additional 3,606,255 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA acquired a new position in Southwest Airlines during the fourth quarter valued at approximately $143,450,000. Institutional investors own 80.82% of the company's stock.

Key Southwest Airlines News

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: Zacks recommends LUV as one of three airline buys despite the fuel spike, highlighting relative value and recovery potential. 3 Airline Stocks to Bet on Despite the Sharp Fuel Price Increase
• Neutral Sentiment: Coverage of which carriers hedged fuel successfully indicates a mixed impact across the industry—some airlines will see cost relief while others face larger margin pressure. Global airlines: Fuel‑hedging winners and losers in the oil spike
• Neutral Sentiment: Longer‑term analysis notes certain travel names have already been hit hard but could recover, implying volatility rather than a permanent downgrade for select carriers. The 2 Worst-Hit Stocks Since the Iran War Started Drop Again. Why There's Hope.
• Negative Sentiment: Reporting details Southwest’s direct exposure to rising jet‑fuel costs and operational headwinds (wage inflation, delivery delays) and notes management actions on seating and cabin changes — all pressure margins and execution. Southwest Airlines Weighs Geopolitical Fuel Shock Against Service Changes And Valuation
• Negative Sentiment: Industry piece warns that rising jet fuel is pushing airfares higher and prompted broad selling in airline stocks as investors price in lower near‑term profitability. Airfares are likely to rise': Rising jet fuel costs send airline stocks reeling
• Negative Sentiment: Market minute coverage notes grounded flights and profit concerns for carriers including Southwest, weighing on near‑term sentiment. Bitcoin prices gain on Strategy buy, United Airlines stock dips
• Negative Sentiment: Commentary argues the Middle East war is crushing travel stocks via higher fuel and widespread cancellations — a reminder downside risks remain if the conflict persists. The Middle East War Is Crashing This Group of Stocks

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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