The Goldman Sachs Group Lowers Southwest Airlines (NYSE:LUV) Price Target to $30.00

Southwest Airlines (NYSE:LUV) had its target price cut by investment analysts at The Goldman Sachs Group from $32.00 to $30.00 in a research report issued to clients and investors on Wednesday,MarketScreener reports. The firm currently has a “sell” rating on the airline’s stock. The Goldman Sachs Group’s target price would indicate a potential downside of 20.33% from the company’s current price.

A number of other research firms also recently weighed in on LUV. 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. TD Cowen dropped their price objective on Southwest Airlines from $66.00 to $55.00 and set a “buy” rating for the company in a report on Monday, March 9th. JPMorgan Chase & Co. raised Southwest Airlines from an “underweight” rating to an “overweight” rating and increased their target price for the stock from $36.00 to $60.00 in a research report on Friday, January 9th. Rothschild & Co Redburn lifted their target price on Southwest Airlines from $27.00 to $35.00 and gave the company a “sell” rating in a report on Thursday, March 5th. Finally, UBS Group lowered their price target on Southwest Airlines from $59.00 to $56.00 and set a “buy” rating for the company in a research report on Monday, March 23rd. Eight analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $43.72.

Southwest Airlines Stock Down 1.5%

LUV opened at $37.66 on Wednesday. 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 $18.49 billion, a price-to-earnings ratio of 44.83, a price-to-earnings-growth ratio of 0.29 and a beta of 1.19. The business has a 50-day moving average of $45.61 and a two-hundred day moving average of $39.34. Southwest Airlines has a 12 month low of $23.82 and a 12 month high of $55.11.

Southwest Airlines (NYSE:LUV) last announced 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 net margin of 1.57% and a return on equity of 6.18%. The business had revenue of $7.44 billion for the quarter, compared to analyst estimates of $7.51 billion. During the same period in the prior year, the firm posted $0.56 EPS. The company’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. On average, research analysts expect that Southwest Airlines will post 1.55 earnings per share for the current year.

Institutional Trading of Southwest Airlines

A number of hedge funds have recently made changes to their positions in the company. Elevation Point Wealth Partners LLC acquired a new position in shares of Southwest Airlines during the second quarter worth $25,000. SHP Wealth Management acquired a new stake in Southwest Airlines during the 4th quarter valued at $25,000. GHP Investment Advisors Inc. acquired a new stake in Southwest Airlines during the 4th quarter valued at $26,000. Entrust Financial LLC purchased a new stake in Southwest Airlines during the 4th quarter worth $26,000. Finally, Los Angeles Capital Management LLC purchased a new stake in Southwest Airlines during the 4th quarter worth $26,000. Hedge funds and other 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: Zacks highlights LUV as a “strong value stock,” arguing the shares look attractive on style/value metrics relative to the airline group, which could support longer-term upside for value-focused investors. Here’s Why Southwest Airlines (LUV) is a Strong Value Stock
• Positive Sentiment: Jefferies nudged its price target up slightly (from $41 to $42) and kept a Hold — a modest vote of stability that suggests some dealers see the hit as selectively priced-in rather than structural. Jefferies adjusts price target on Southwest Airlines to $42
• Neutral Sentiment: Bank of America and other analysts note that strong travel demand and the ability to raise fares could offset some of the margin pressure from higher fuel — but this is conditional and may not fully offset rapid fuel spikes. High Fuel Costs Weigh on Airlines but Demand May Offset Impact, BofA Says
• Neutral Sentiment: Several firms (BMO, Raymond James) trimmed price targets but kept Outperform ratings — a mixed signal: conviction in recovery remains, but near-term margin risk forces lower valuation. BMO lowers PT on Southwest to $45 Raymond James lowers PT on Southwest to $45
• Negative Sentiment: Jet fuel and crude prices have surged (reports of ~100% jet-fuel increases in some contexts), directly raising operating costs and weighing on airline margins — a core near-term negative for Southwest’s profitability. Jet fuel prices are up 100%, oil prices keep surging, and airlines are paying the price
• Negative Sentiment: Geopolitical comments about potential conflict with Iran have spooked markets and raised jet-fuel cost concerns, triggering broad airline sell-offs that include Southwest. This is a direct catalyst for today’s weakness. Airline Stocks Tumble as Trump’s Iran War Comments Spark Jet Fuel Cost Concerns
• Negative Sentiment: Multiple firms cut price targets and one notable sell rating (Goldman Sachs lowered its PT to $30 and maintains Sell); Bank of America also moved to Underperform — analyst downgrades add selling pressure and reduce conviction among institutional holders. Goldman lowers PT on Southwest to $30 (Sell) BofA lowers PT to $40 (Underperform)
• Negative Sentiment: Additional coverage notes tie the fuel spike directly to Southwest’s near-term cost outlook and possible margin compression; that macro-driven risk is the dominant near-term driver for investor sentiment. Airline Stocks Tumble as United (UAL) and Southwest (LUV) Face Soaring Jet Fuel Crisis

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.