Argus Lowers Southwest Airlines (NYSE:LUV) Price Target to $45.00

Southwest Airlines (NYSE:LUV) had its price target dropped by equities research analysts at Argus from $55.00 to $45.00 in a research report issued to clients and investors on Friday,MarketScreener reports. The firm currently has a “buy” rating on the airline’s stock. Argus’ price target would indicate a potential upside of 14.04% from the stock’s previous close.

Several other equities research analysts have also recently issued reports on LUV. Zacks Research cut shares of Southwest Airlines from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, March 11th. Bank of America cut their price objective on shares of Southwest Airlines from $42.00 to $40.00 and set an “underperform” rating for the company in a research report on Wednesday, April 1st. UBS Group cut their price objective on shares of Southwest Airlines from $59.00 to $56.00 and set a “buy” rating for the company in a research report on Monday, March 23rd. BNP Paribas Exane raised their price objective on shares of Southwest Airlines from $24.00 to $33.00 and gave the stock an “underperform” rating in a research report on Tuesday, April 21st. Finally, JPMorgan Chase & Co. cut their price objective on shares of Southwest Airlines from $58.00 to $56.00 in a research report on Friday, March 27th. Nine research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $44.31.

Southwest Airlines Price Performance

Southwest Airlines stock opened at $39.46 on Friday. Southwest Airlines has a 12-month low of $25.89 and a 12-month high of $55.11. The stock has a market cap of $19.38 billion, a P/E ratio of 25.46, a PEG ratio of 0.43 and a beta of 1.19. The company has a 50-day moving average price of $42.72 and a 200 day moving average price of $40.24. The company has a current ratio of 0.48, a quick ratio of 0.45 and a debt-to-equity ratio of 0.66.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.45. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The firm had revenue of $7.25 billion during the quarter, compared to analysts’ expectations of $8.46 billion. During the same period last year, the business earned ($0.13) earnings per share. Southwest Airlines’s revenue was up 12.8% compared to the same quarter last year. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Sell-side analysts anticipate that Southwest Airlines will post 2.71 earnings per share for the current year.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors have recently made changes to their positions in the stock. Cibc World Market Inc. increased its position in shares of Southwest Airlines by 12.6% during the third quarter. Cibc World Market Inc. now owns 1,916,003 shares of the airline’s stock valued at $61,140,000 after acquiring an additional 214,092 shares during the last quarter. Hussman Strategic Advisors Inc. purchased a new position in shares of Southwest Airlines in the third quarter valued at approximately $2,010,000. SG Americas Securities LLC boosted its stake in shares of Southwest Airlines by 2,468.4% in the fourth quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock valued at $155,085,000 after purchasing an additional 3,606,255 shares during the period. Nordea Investment Management AB purchased a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $31,968,000. Finally, Barclays PLC boosted its stake in shares of Southwest Airlines by 17.3% in the third quarter. Barclays PLC now owns 2,304,031 shares of the airline’s stock valued at $73,522,000 after purchasing an additional 339,666 shares during the period. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Southwest Airlines

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

• Positive Sentiment: Raymond James raised its price target to $55 and kept an Outperform rating, citing margin strength — a bullish analyst action that likely supported the stock. Raymond James raises Southwest stock price target
• Positive Sentiment: Evercore nudged its target higher to $44, and several reports note other firms (and some analysts aggregated by Benzinga) have lifted their forecasts after Q1 — signaling improving analyst confidence in longer‑term recovery. Evercore adjusts price target
• Positive Sentiment: Q1 revenue topped estimates (record quarterly revenue reported), which investors viewed as evidence that the company’s initiatives are driving higher unit revenue. Zacks: Q1 revenue beat
• Neutral Sentiment: Q1 results were mixed: EPS roughly met consensus ($0.45) while revenue beat — a near-term neutral read that keeps investor focus on guidance and fuel trends. Q1 earnings snapshot
• Neutral Sentiment: Management’s earnings call highlighted progress from recent initiatives but reiterated exposure to jet fuel; the transcript provides detail for investors assessing execution vs. cost risk. Earnings call transcript
• Negative Sentiment: Southwest set Q2 adjusted EPS guidance with a midpoint below Street estimates and said updating FY guidance wouldn’t be productive amid macro uncertainty — a clear near‑term negative and the main reason some traders sold into the print. Analysts boost forecasts following Q1
• Negative Sentiment: Surging jet fuel costs are flagged as a material risk that could put full‑year guidance at risk — this cost pressure is cited across media and is weighing on near‑term profitability expectations. Fuel costs risk
• Negative Sentiment: Some analysts trimmed targets or gave cautious ratings (Argus cut its target to $45 from $55; HSBC moved to Hold with a $36.10 target), reflecting mixed views that can cap upside. Argus adjusts price target

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.