Jefferies Financial Group Increases Southwest Airlines (NYSE:LUV) Price Target to $42.00

Southwest Airlines (NYSE:LUV) had its price target raised by research analysts at Jefferies Financial Group from $41.00 to $42.00 in a note issued to investors on Tuesday, Marketbeat reports. The firm currently has a “hold” rating on the airline’s stock. Jefferies Financial Group’s price target would indicate a potential upside of 9.82% from the company’s previous close.

LUV has been the subject of several other reports. Barclays raised shares of Southwest Airlines from an “equal weight” rating to an “overweight” rating and boosted their price objective for the company from $34.00 to $56.00 in a research report on Tuesday, December 16th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Southwest Airlines in a research note on Friday, March 27th. Bank of America lowered their price target on Southwest Airlines from $42.00 to $40.00 and set an “underperform” rating for the company in a report on Wednesday. Wall Street Zen cut Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, March 14th. Finally, Seaport Research Partners raised their price objective on Southwest Airlines from $57.00 to $58.00 in a report on Thursday, January 29th. Eight research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $44.94.

Southwest Airlines Stock Performance

LUV stock opened at $38.24 on Tuesday. Southwest Airlines has a twelve month low of $23.82 and a twelve month high of $55.11. The firm has a market cap of $18.78 billion, a price-to-earnings ratio of 45.53, a PEG ratio of 0.27 and a beta of 1.19. The business’s fifty day simple moving average is $45.70 and its two-hundred day simple moving average is $39.36. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57.

Southwest Airlines (NYSE:LUV) last issued its 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. The firm had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The business’s revenue was up 7.4% on a year-over-year basis. During the same period in the previous year, the firm 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. Analysts predict that Southwest Airlines will post 1.55 earnings per share for the current year.

Hedge Funds Weigh In On Southwest Airlines

A number of hedge funds and other institutional investors have recently modified their holdings of LUV. SHP Wealth Management purchased a new position in Southwest Airlines during the fourth quarter valued at approximately $25,000. GHP Investment Advisors Inc. purchased a new stake in Southwest Airlines during the fourth quarter worth $26,000. Entrust Financial LLC bought a new stake in Southwest Airlines during the 4th quarter valued at $26,000. Los Angeles Capital Management LLC purchased a new position in shares of Southwest Airlines in the 4th quarter valued at $26,000. Finally, Optima Capital LLC bought a new position in shares of Southwest Airlines in the 4th quarter worth $27,000. 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: Jefferies nudged its price target up to $42 from $41 and kept a “hold” rating, signaling modest support for the shares. Jefferies raises PT to $42
• Positive Sentiment: BMO Capital Markets and Raymond James each lowered their PTs to $45 but kept “outperform” ratings — that keeps institutional sentiment constructive and implies an analyst-implied upside (~18% at recent prices). BMO lowers PT to $45, keeps outperform Raymond James lowers PT to $45, keeps outperform
• Neutral Sentiment: Bank of America research notes that higher jet fuel is pressuring airline margins but says strong travel demand and fare increases could offset some of the pain — this is a mixed macro signal that can cap rallies while supporting revenue resilience. High Fuel Costs Weigh on Airlines (BofA)
• Negative Sentiment: Goldman Sachs cut its PT to $30 and maintained a “sell” rating — a substantive negative as it implies meaningful downside and could pressure sentiment among institutional holders. Goldman Sachs lowers PT to $30, keeps sell
• Negative Sentiment: Bank of America Securities trimmed its PT to $40 and kept an “underperform” rating, another bearish signal that increases near-term selling pressure. BofA lowers PT to $40, keeps underperform
• Negative Sentiment: UBS trimmed its PT to $56 from $59 (reiterating buy), a mild negative that reflects higher jet-fuel assumptions and slightly reduced upside. UBS cuts PT to $56
• Negative Sentiment: A broader industry report highlights the Iran war and related costs are pushing airlines toward higher fares and slimmer margins — a macro headwind that could pressure Southwest’s profits and sentiment into the summer. Airlines face price hikes as Iran war pressures business

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.