Raymond James Financial Issues Pessimistic Forecast for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price objective lowered by stock analysts at Raymond James Financial from $55.00 to $45.00 in a research note issued on Tuesday,MarketScreener reports. The brokerage presently has an “outperform” rating on the airline’s stock. Raymond James Financial’s price target would suggest a potential upside of 17.67% from the company’s previous close.

A number of other research analysts also recently issued reports on LUV. BNP Paribas Exane boosted their price objective on shares of Southwest Airlines from $19.00 to $24.00 and gave the company an “underperform” rating in a research report on Monday, December 8th. Morgan Stanley lifted their target price on shares of Southwest Airlines from $50.00 to $55.00 and gave the company an “overweight” rating in a research note on Friday, January 30th. Seaport Research Partners boosted 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 increased their price target for the stock from $43.00 to $57.50 in a research note on Friday, January 30th. Finally, TD Cowen cut their price objective on Southwest Airlines from $66.00 to $55.00 and set a “buy” rating on the stock in a research report on Monday, March 9th. Eight investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, Southwest Airlines has an average rating of “Hold” and an average target price of $44.94.

Southwest Airlines Stock Up 1.8%

NYSE LUV opened at $38.24 on Tuesday. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45. The stock has a market capitalization of $18.78 billion, a PE ratio of 45.53, a PEG ratio of 0.27 and a beta of 1.19. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $55.11. The business’s 50-day moving average is $45.70 and its 200 day moving average is $39.36.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data 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 business had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. During the same quarter last year, the business posted $0.56 EPS. The business’s revenue was up 7.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Sell-side analysts forecast that Southwest Airlines will post 1.55 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of LUV. SHP Wealth Management purchased a new position in Southwest Airlines in the 4th quarter worth approximately $25,000. GHP Investment Advisors Inc. purchased a new stake in Southwest Airlines during the 4th quarter valued at $26,000. Entrust Financial LLC bought a new stake in shares of Southwest Airlines in the 4th quarter worth $26,000. Los Angeles Capital Management LLC bought a new stake in shares of Southwest Airlines in the 4th quarter worth $26,000. Finally, Optima Capital LLC purchased a new position in shares of Southwest Airlines in the fourth quarter worth $27,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Southwest Airlines

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

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.