Susquehanna Forecasts Strong Price Appreciation for Southwest Airlines (NYSE:LUV) Stock

Southwest Airlines (NYSE:LUV) had its price target lifted by Susquehanna from $35.00 to $45.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the airline’s stock. Susquehanna’s price target would suggest a potential upside of 1.23% from the company’s previous close.

Several other research analysts have also recently weighed in on LUV. Citigroup upped their price objective on shares of Southwest Airlines from $38.00 to $44.00 and gave the stock a “neutral” rating in a research report on Wednesday. Sanford C. Bernstein lifted their price target on Southwest Airlines from $31.00 to $34.00 and gave the company a “market perform” rating in a research report on Thursday, November 20th. UBS Group lifted their price objective on Southwest Airlines from $43.00 to $45.00 and gave the company a “neutral” rating in a research note on Tuesday, January 6th. BMO Capital Markets started coverage on Southwest Airlines in a report on Tuesday, December 9th. They set a “market perform” rating and a $43.00 price target on the stock. Finally, Wells Fargo & Company began coverage on shares of Southwest Airlines in a research report on Thursday, December 18th. They set an “equal weight” rating and a $45.00 price target for the company. Six research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $42.11.

Southwest Airlines Stock Performance

Shares of LUV stock opened at $44.46 on Friday. The firm has a market cap of $22.99 billion, a price-to-earnings ratio of 68.39, a P/E/G ratio of 0.27 and a beta of 1.16. The firm’s 50-day simple moving average is $37.32 and its two-hundred day simple moving average is $34.26. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.42 and a current ratio of 0.49. Southwest Airlines has a 52 week low of $23.82 and a 52 week high of $45.02.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings results on Tuesday, February 6th. The airline reported ($0.38) EPS for the quarter. Southwest Airlines had a net margin of 1.38% and a return on equity of 6.39%. The firm had revenue of $6.17 billion for the quarter. As a group, equities analysts forecast that Southwest Airlines will post 1.55 earnings per share for the current year.

Institutional Trading of Southwest Airlines

A number of hedge funds and other institutional investors have recently bought and sold shares of LUV. First Heartland Consultants Inc. purchased a new stake in shares of Southwest Airlines during the fourth quarter valued at about $207,000. SG Americas Securities LLC boosted its position 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 buying an additional 3,606,255 shares during the last quarter. Wealth Enhancement Advisory Services LLC raised its holdings in shares of Southwest Airlines by 2.9% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 36,047 shares of the airline’s stock worth $1,531,000 after purchasing an additional 1,026 shares during the last quarter. Wedmont Private Capital purchased a new stake in shares of Southwest Airlines in the fourth quarter worth about $255,000. Finally, Nordea Investment Management AB acquired a new stake in shares of Southwest Airlines during the 4th quarter worth approximately $31,968,000. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: Rare double-upgrade from JPMorgan — JPMorgan upgraded LUV from underweight to overweight and lifted its price target to $60, a large upward move that traders say is the main catalyst for the rally as it signals materially higher earnings expectations. Barron’s: Rare Double Upgrade
• Positive Sentiment: Multiple price-target raises — Citi and UBS both bumped targets (Citi to $44, UBS to $45), reinforcing the analyst trend higher and supporting upside in the stock as models are re-priced for better forward earnings. Citi price target raise
• Positive Sentiment: Broader analyst optimism — Citigroup and other firms published bullish commentary forecasting notable price appreciation based on improving fundamentals and potential margin recovery. Citigroup forecast
• Neutral Sentiment: Susquehanna raised its target to $45 but kept a “neutral” rating — the higher target supports the rally but the retained rating tempers how decisive the firm views near-term upside. Benzinga: Susquehanna note
• Neutral Sentiment: Strategic/cabin changes under review — articles on Southwest’s cabin revamp and assigned seating argue these initiatives could reshape unit revenue and customer experience, but benefits depend on execution and timing. Yahoo: Cabin revamp
• Neutral Sentiment: New marketing/partnerships — a legacy partnership with the Chicago Cubs is positive PR and revenue/brand-supportive, but unlikely to move near-term fundamentals materially. MLB press release
• Neutral Sentiment: Mixed analyst landscape — several firms remain cautious/hold-rated (e.g., Wells Fargo), so while sentiment is tilting positive, coverage is not uniformly bullish. Wells Fargo hold

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.