Southwest Airlines (NYSE:LUV) Price Target Raised to $45.00

Southwest Airlines (NYSE:LUV) had its price target hoisted by Evercore ISI from $40.00 to $45.00 in a research report released on Thursday,Benzinga reports. Evercore ISI currently has an in-line rating on the airline’s stock.

Other equities analysts have also issued reports about the stock. Susquehanna upped their price target on shares of Southwest Airlines from $35.00 to $45.00 and gave the stock a “neutral” rating in a research report on Friday, January 9th. Wall Street Zen upgraded Southwest Airlines from a “sell” rating to a “hold” rating in a research report on Saturday, October 25th. Raymond James Financial boosted their price target on shares of Southwest Airlines from $42.00 to $49.00 and gave the stock an “outperform” rating in a research report on Friday, December 19th. Morgan Stanley upped their price target on shares of Southwest Airlines from $48.00 to $50.00 and gave the company an “overweight” rating in a research note on Thursday, January 8th. Finally, UBS Group boosted their target price on shares of Southwest Airlines from $43.00 to $45.00 and gave the stock a “neutral” rating in a report on Tuesday, January 6th. Seven research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $44.76.

Southwest Airlines Stock Down 2.0%

LUV opened at $47.51 on Thursday. The firm’s 50 day simple moving average is $40.71 and its two-hundred day simple moving average is $35.20. The company has a market capitalization of $24.57 billion, a PE ratio of 56.56, a PEG ratio of 0.44 and a beta of 1.16. Southwest Airlines has a 1-year low of $23.82 and a 1-year high of $49.85. The company has a current ratio of 0.52, a quick ratio of 0.42 and a debt-to-equity ratio of 0.57.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data 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 net margin of 1.57% and a return on equity of 6.18%. The firm had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. During the same quarter in the previous year, the firm posted $0.56 EPS. The company’s revenue for the quarter 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, equities analysts forecast that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, January 16th. Stockholders of record on Friday, December 26th were issued a $0.18 dividend. The ex-dividend date was Friday, December 26th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.5%. Southwest Airlines’s dividend payout ratio is presently 85.71%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC grew its position in shares of Southwest Airlines by 100.6% during the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock worth $1,303,000 after buying an additional 19,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Southwest Airlines by 5.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock valued at $2,050,000 after buying an additional 3,141 shares in the last quarter. Empowered Funds LLC boosted 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 in the last quarter. Farther Finance Advisors LLC grew its stake in Southwest Airlines by 54.9% during the 2nd quarter. Farther Finance Advisors LLC now owns 5,996 shares of the airline’s stock worth $195,000 after buying an additional 2,125 shares during the last quarter. Finally, Janney Montgomery Scott LLC grew its stake in shares of Southwest Airlines by 11.0% during the second quarter. Janney Montgomery Scott LLC now owns 11,498 shares of the airline’s stock worth $373,000 after acquiring an additional 1,136 shares during the last quarter. Institutional investors own 80.82% of the company’s stock.

Key Headlines Impacting Southwest Airlines

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

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.