Susquehanna Has Lowered Expectations for Southwest Airlines (NYSE:LUV) Stock Price

Southwest Airlines (NYSE:LUV) had its price target cut by analysts at Susquehanna from $55.00 to $42.00 in a report released on Thursday,MarketScreener reports. The firm currently has a “neutral” rating on the airline’s stock. Susquehanna’s target price suggests a potential upside of 11.54% from the company’s current price.

Other research analysts have also recently issued research reports about the company. Barclays upgraded Southwest Airlines from an “equal weight” rating to an “overweight” rating and lifted their target price for the company from $34.00 to $56.00 in a research report on Tuesday, December 16th. Evercore raised their price target on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an “in-line” rating in a research note on Thursday, January 29th. Raymond James Financial decreased their price target on shares of Southwest Airlines from $55.00 to $45.00 and set an “outperform” rating on the stock in a report on Tuesday. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, December 12th. Finally, JPMorgan Chase & Co. cut their target price on shares of Southwest Airlines from $58.00 to $56.00 in a research report on Friday, March 27th. Eight equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, Southwest Airlines presently has an average rating of “Hold” and a consensus price target of $43.72.

Southwest Airlines Trading Up 0.1%

Shares of LUV stock opened at $37.66 on Thursday. The stock’s fifty day moving average price is $45.52 and its two-hundred day moving average price is $39.39. The company has a market cap of $18.49 billion, a PE ratio of 44.83, a P/E/G ratio of 0.30 and a beta of 1.19. Southwest Airlines has a fifty-two week low of $23.82 and a fifty-two week high of $55.11. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $7.51 billion. During the same quarter in the previous year, the firm earned $0.56 EPS. Southwest Airlines’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. Equities analysts predict that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Franklin Resources Inc. raised its holdings in Southwest Airlines by 7.0% in the 4th quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock valued at $1,661,488,000 after buying an additional 2,626,853 shares during the last quarter. Ameriprise Financial Inc. grew its holdings in Southwest Airlines by 43.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock worth $393,615,000 after acquiring an additional 3,753,183 shares during the last quarter. JPMorgan Chase & Co. increased its position in Southwest Airlines by 13.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 12,218,086 shares of the airline’s stock valued at $389,879,000 after acquiring an additional 1,459,235 shares during the period. Invesco Ltd. increased its position in Southwest Airlines by 9.2% in the 3rd quarter. Invesco Ltd. now owns 6,837,197 shares of the airline’s stock valued at $218,175,000 after acquiring an additional 577,326 shares during the period. Finally, Morgan Stanley raised its stake in shares of Southwest Airlines by 4.1% during the fourth quarter. Morgan Stanley now owns 6,228,475 shares of the airline’s stock valued at $257,423,000 after acquiring an additional 244,891 shares during the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

Key Stories Impacting Southwest Airlines

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

• Positive Sentiment: TD Cowen trimmed its price target to $46 but kept a Buy rating, signaling some investor confidence in Southwest’s medium-term recovery. TD Cowen adjusts price target on Southwest Airlines to 46 from 56, maintains Buy rating
• Positive Sentiment: Zacks published a bullish/value-oriented note arguing LUV looks like a strong value stock for long-term investors, which can attract buyers who look past near-term fuel volatility. Here’s Why Southwest Airlines (LUV) is a Strong Value Stock
• Neutral Sentiment: Susquehanna lowered its price target to $42 and kept a Neutral rating, reflecting less conviction either way amid the fuel-driven uncertainty. Susquehanna adjusts price target on Southwest Airlines to 42 from 55, maintains Neutral rating
• Negative Sentiment: Multiple reports highlight a sharp monthly decline (≈20–22%) in LUV shares as $100+ oil/jet fuel threatens Southwest’s $4.00 EPS target — direct downward pressure on expectations and valuation. Southwest Airlines Dropped 20.89% in a Month as $104 Oil Threatens Its $4.00 EPS Target
• Negative Sentiment: Industry headlines link rising jet‑fuel costs to geopolitical tensions (Iran conflict / Trump comments), and coverage notes jet fuel spiking (reports cite big percentage increases), which raises near‑term operating-cost risk for airlines including LUV. Jet fuel prices are up 100%, oil prices keep surging, and airlines are paying the price
• Negative Sentiment: Broker moves: BMO and Raymond James cut price targets (to roughly $45), adding to selling pressure as analysts mark down near‑term earnings risk. BMO Capital Markets Cuts Southwest Airlines (NYSE:LUV) Price Target to $45.00
• Negative Sentiment: News aggregation and crypto/retail sentiment metrics show deteriorating retail sentiment (e.g., Reddit scores), which can amplify intraday selling in volatile market conditions. Southwest Airlines (LUV) Stock Tumbles Amid Soaring Jet Fuel Costs and Iran Conflict

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.