The Goldman Sachs Group Boosts Southwest Airlines (NYSE:LUV) Price Target to $32.00

Southwest Airlines (NYSE:LUV) had its price target hoisted by stock analysts at The Goldman Sachs Group from $29.00 to $32.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has a “sell” rating on the airline’s stock. The Goldman Sachs Group’s price target indicates a potential downside of 32.64% from the stock’s previous close.

Other equities analysts have also recently issued research reports about the company. UBS Group lifted their price target on Southwest Airlines from $43.00 to $45.00 and gave the stock a “neutral” rating in a report on Tuesday, January 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of Southwest Airlines in a research note on Monday, December 29th. Bank of America increased their price target on Southwest Airlines from $37.00 to $42.00 and gave the company an “underperform” rating in a research note on Friday. TD Cowen lifted their price objective on shares of Southwest Airlines from $42.00 to $50.00 and gave the stock a “hold” rating in a research report on Friday. Finally, BMO Capital Markets raised shares of Southwest Airlines from a “market perform” rating to an “outperform” rating and increased their price objective for the company from $43.00 to $57.50 in a research report on Friday. Seven equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $44.76.

Southwest Airlines Trading Down 2.0%

Shares of Southwest Airlines stock opened at $47.51 on Friday. The stock has a market cap of $24.57 billion, a P/E ratio of 56.56, a P/E/G ratio of 0.44 and a beta of 1.16. The company has a quick ratio of 0.42, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. Southwest Airlines has a 12-month low of $23.82 and a 12-month high of $49.85. The business’s 50 day moving average is $40.71 and its 200-day moving average is $35.20.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. The business had revenue of $7.44 billion for the quarter, compared to the consensus estimate of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The firm’s revenue for the quarter was up 7.4% on a year-over-year basis. During the same period in the previous year, the company earned $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. Equities research analysts predict that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Institutional Trading of Southwest Airlines

A number of institutional investors have recently modified their holdings of the stock. AQR Capital Management LLC raised 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 purchasing an additional 19,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Southwest Airlines by 5.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after buying an additional 3,141 shares in the last quarter. Empowered Funds LLC increased its holdings in Southwest Airlines by 7.6% in the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock valued at $250,000 after buying an additional 527 shares during the period. Janney Montgomery Scott LLC raised its position in shares of Southwest Airlines by 11.0% in the 2nd quarter. Janney Montgomery Scott LLC now owns 11,498 shares of the airline’s stock valued at $373,000 after buying an additional 1,136 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. raised its position in shares of Southwest Airlines by 3.0% in the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 65,558 shares of the airline’s stock valued at $2,127,000 after buying an additional 1,933 shares in the last quarter. 80.82% of the stock is currently owned by institutional investors.

Key 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.