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

Southwest Airlines (NYSE:LUV) had its target price reduced by research analysts at TD Cowen from $56.00 to $46.00 in a research note issued to investors on Thursday,MarketScreener reports. The brokerage presently has a “buy” rating on the airline’s stock. TD Cowen’s price target points to a potential upside of 22.16% from the stock’s current price.

A number of other research analysts also recently issued reports on the company. UBS Group decreased their price objective on Southwest Airlines from $59.00 to $56.00 and set a “buy” rating for the company in a report on Monday, March 23rd. Deutsche Bank Aktiengesellschaft upped their price target on Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, December 12th. BNP Paribas Exane raised their price target on shares of Southwest Airlines from $19.00 to $24.00 and gave the stock an “underperform” rating in a research note on Monday, December 8th. Evercore boosted their price objective on shares of Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a research report on Thursday, January 29th. Finally, BMO Capital Markets reduced their target price on shares of Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating for the company in a report on Tuesday. Eight analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, Southwest Airlines has an average rating of “Hold” and a consensus target price of $43.72.

Southwest Airlines Trading Up 0.1%

LUV opened at $37.66 on Thursday. The stock has a market capitalization of $18.49 billion, a P/E ratio of 44.83, a P/E/G ratio of 0.30 and a beta of 1.19. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57. Southwest Airlines has a 12 month low of $23.82 and a 12 month high of $55.11. The firm’s fifty day simple moving average is $45.52 and its 200 day simple moving average is $39.39.

Southwest Airlines (NYSE:LUV) last released its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (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 firm had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. During the same quarter in the prior year, the company earned $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. As a group, research analysts anticipate that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors and hedge funds have recently made changes to their positions in the stock. Rockefeller Capital Management L.P. boosted its holdings in shares of Southwest Airlines by 19.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 79,357 shares of the airline’s stock valued at $3,280,000 after buying an additional 12,779 shares during the last quarter. Corient Private Wealth LLC increased its holdings in Southwest Airlines by 27.9% during the fourth quarter. Corient Private Wealth LLC now owns 85,759 shares of the airline’s stock worth $3,545,000 after buying an additional 18,685 shares during the last quarter. Hsbc Holdings PLC increased its holdings in Southwest Airlines by 23.8% during the fourth quarter. Hsbc Holdings PLC now owns 939,398 shares of the airline’s stock worth $38,916,000 after buying an additional 180,619 shares during the last quarter. SHP Wealth Management bought a new stake in Southwest Airlines during the fourth quarter worth $25,000. Finally, Strategic Investment Solutions Inc. IL raised its position in Southwest Airlines by 37.9% during the fourth quarter. Strategic Investment Solutions Inc. IL now owns 7,275 shares of the airline’s stock worth $301,000 after acquiring an additional 2,000 shares in the last quarter. Institutional investors own 80.82% of the company’s stock.

Key Southwest Airlines News

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.