Southwest Airlines (NYSE:LUV) Stock Price Expected to Rise, Seaport Research Partners Analyst Says

Southwest Airlines (NYSE:LUV) had its price objective raised by equities researchers at Seaport Research Partners from $57.00 to $58.00 in a research report issued on Thursday,MarketScreener reports. Seaport Research Partners’ price target points to a potential upside of 22.08% from the company’s current price.

Several other research analysts have also commented on LUV. TD Cowen lifted their price target on Southwest Airlines from $42.00 to $50.00 and gave the stock a “hold” rating in a report on Friday. Barclays upgraded shares of Southwest Airlines from an “equal weight” rating to an “overweight” rating and raised their price objective for the stock from $34.00 to $56.00 in a research report on Tuesday, December 16th. JPMorgan Chase & Co. upgraded shares of Southwest Airlines from an “underweight” rating to an “overweight” rating and boosted their target price for the company from $36.00 to $60.00 in a report on Friday, January 9th. Morgan Stanley increased their price target on shares of Southwest Airlines from $50.00 to $55.00 and gave the company an “overweight” rating in a research note on Friday. Finally, Wells Fargo & Company began coverage on shares of Southwest Airlines in a report on Thursday, December 18th. They set an “equal weight” rating and a $45.00 price target for the company. Seven analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $44.76.

Southwest Airlines Stock Down 2.0%

LUV stock opened at $47.51 on Thursday. The company has a current ratio of 0.52, a quick ratio of 0.42 and a debt-to-equity ratio of 0.57. The firm has a 50-day moving average of $40.71 and a two-hundred day moving average of $35.21. Southwest Airlines has a 12 month low of $23.82 and a 12 month high of $49.85. The company has a market cap of $24.57 billion, a price-to-earnings ratio of 56.56, a PEG ratio of 0.44 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The business had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.51 billion. During the same period in the prior year, the business earned $0.56 earnings per share. The business’s revenue was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, analysts forecast that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Ameriprise Financial Inc. increased its position in shares of Southwest Airlines by 43.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock valued at $393,615,000 after purchasing an additional 3,753,183 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in Southwest Airlines by 13.6% in the third quarter. JPMorgan Chase & Co. now owns 12,218,086 shares of the airline’s stock valued at $389,879,000 after buying an additional 1,459,235 shares during the last quarter. Artisan Partners Limited Partnership raised its stake in Southwest Airlines by 0.9% in the second quarter. Artisan Partners Limited Partnership now owns 10,763,935 shares of the airline’s stock valued at $349,182,000 after buying an additional 98,290 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in Southwest Airlines by 2,403.8% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock worth $328,305,000 after buying an additional 9,716,160 shares during the last quarter. Finally, Invesco Ltd. boosted its position in shares of Southwest Airlines by 9.2% during the 3rd quarter. Invesco Ltd. now owns 6,837,197 shares of the airline’s stock worth $218,175,000 after acquiring an additional 577,326 shares in the last quarter. 80.82% of the stock is currently owned by institutional investors and hedge funds.

More Southwest Airlines News

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

• Positive Sentiment: Management issued robust FY‑2026 guidance (at least $4.00 adjusted EPS) and signaled material upside from new seat/ancillary fees — the guidance and new revenue levers are the main driver of recent upside. Q4 Earnings Highlights
• Positive Sentiment: Q4 results beat EPS estimates ($0.58 vs. $0.56) which reinforced confidence in the recovery and margin improvement. Earnings Beat
• Positive Sentiment: Multiple bullish analyst moves raised upside expectations — Morgan Stanley to $55 (overweight), BMO upgraded to outperform with $57.50, Wells Fargo and TD Cowen lifted targets toward $50 — these upgrades support the stock’s upside narrative. Analyst Coverage
• Neutral Sentiment: Industry and stock‑screen pieces (Zacks, Seeking Alpha) compare LUV to peers and discuss valuation; helpful for context but less likely to drive immediate moves. Peer Comparison
• Negative Sentiment: Near‑term guidance is mixed: Q1 EPS guidance of ~$0.45 came in below Street estimates, and revenue trends in the quarter lagged expectations — a near‑term headwind for sentiment. Guidance & Results
• Negative Sentiment: Some large firms remain bearish or cautious despite raising targets — Goldman Sachs raised its PT to $32 but maintains a “sell” rating, and Bank of America kept an “underperform” stance with a $42 PT — these lower‑PT calls can cap rallies and prompt profit‑taking. Goldman / BofA Notes

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.