Southwest Airlines (NYSE:LUV) Upgraded at TD Cowen

TD Cowen upgraded shares of Southwest Airlines (NYSE:LUV) from a hold rating to a buy rating in a report released on Friday, Marketbeat reports. They currently have $66.00 price objective on the airline’s stock, up from their previous price objective of $50.00.

Other equities analysts have also recently issued reports about the stock. Seaport Research Partners upped their price target on shares of Southwest Airlines from $57.00 to $58.00 in a research report on Thursday, January 29th. BMO Capital Markets raised shares of Southwest Airlines from a “market perform” rating to an “outperform” rating and boosted their price objective for the stock from $43.00 to $57.50 in a research note on Friday, January 30th. Sanford C. Bernstein raised their target price on Southwest Airlines from $31.00 to $34.00 and gave the stock a “market perform” rating in a research report on Thursday, November 20th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Southwest Airlines in a report on Monday, December 29th. Finally, Deutsche Bank Aktiengesellschaft upped their price target on Southwest Airlines from $40.00 to $48.00 and gave the company a “buy” rating in a research report on Friday, December 12th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $49.03.

Southwest Airlines Price Performance

Shares of LUV opened at $49.20 on Friday. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. The stock has a market cap of $24.17 billion, a PE ratio of 58.57, a PEG ratio of 0.35 and a beta of 1.10. Southwest Airlines has a 12-month low of $23.82 and a 12-month high of $55.11. The business has a 50-day simple moving average of $46.30 and a two-hundred day simple moving average of $37.93.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The company had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. During the same period in the previous year, the business posted $0.56 earnings per share. The business’s quarterly 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. Analysts anticipate that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Southwest Airlines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th will be given a $0.18 dividend. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. Southwest Airlines’s dividend payout ratio (DPR) is 85.71%.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors and hedge funds have recently made changes to their positions in the business. Elevation Point Wealth Partners LLC bought a new stake in Southwest Airlines in the second quarter worth approximately $25,000. GHP Investment Advisors Inc. acquired a new stake in shares of Southwest Airlines during the 4th quarter worth approximately $26,000. Entrust Financial LLC bought a new stake in shares of Southwest Airlines in the 4th quarter valued at $26,000. Los Angeles Capital Management LLC acquired a new position in shares of Southwest Airlines during the 4th quarter valued at $26,000. Finally, Corsicana & Co. acquired a new position in shares of Southwest Airlines during the 3rd quarter valued at $27,000. Institutional investors own 80.82% of the company’s stock.

More Southwest Airlines News

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

• Positive Sentiment: Management’s overhaul and 2026 guidance are supporting investor confidence — coverage notes the transformation and clearer FY‑2026 targets that helped lift sentiment. A Look At Southwest Airlines (LUV) Valuation As Its Overhaul And 2026 Guidance Boost Investor Confidence
• Positive Sentiment: Product changes (assigned seating, extra‑legroom options, expanded distribution, free Wi‑Fi for Rapid Rewards) plus a large 2025 shareholder return (~$2.9B) are reframing Southwest from a low‑cost carrier to a differentiated, revenue‑enhancing operator. Is Southwest’s Bold Shift To Assigned Seating And Perks Altering The Investment Case For LUV?
• Positive Sentiment: TD Cowen upgraded LUV from Hold to Buy with a $66 price target, signaling analyst optimism and adding potential upside from improved sentiment and coverage. Benzinga note on TD Cowen upgrade
• Positive Sentiment: Short interest dropped meaningfully in February (≈22.6% decline), reducing immediate short‑pressure and indicating some bearish positions have been covered. (Market data summarized publicly.)
• Neutral Sentiment: Recent earnings showed a modest EPS beat but a revenue miss; market reaction since the report has been positive overall (LUV up ~5% since earnings), but investors are now parsing forward guidance and execution risks. Why Is Southwest (LUV) Up 5% Since Last Earnings Report?
• Neutral Sentiment: Analysts and commentators are debating valuation — some see LUV as still attractive given execution and margin upside, while others flag stretched momentum after the recent run. Are Investors Undervaluing Southwest Airlines (LUV) Right Now?
• Negative Sentiment: Sector headwinds: rising crude oil and broader airline weakness (notably United and Delta share drops) are pressuring airline multiples and can offset Southwest’s company‑level gains. United Airlines, Delta Stocks Fall. Why Airlines Are Getting Crushed.
• Negative Sentiment: Investor caution remains because higher industry labor costs and legacy carriers’ balance‑sheet issues keep the sector sensitive to macro shocks, which can trigger short‑term pullbacks even for stronger operators. AAL Benefits From Improved Air-Travel Demand Amid High Costs

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.