Raymond James Financial Forecasts Strong Price Appreciation for Southwest Airlines (NYSE:LUV) Stock

Southwest Airlines (NYSE:LUV) had its price objective raised by stock analysts at Raymond James Financial from $45.00 to $55.00 in a research report issued on Friday,MarketScreener reports. The brokerage currently has an “outperform” rating on the airline’s stock. Raymond James Financial’s target price points to a potential upside of 39.38% from the company’s previous close.

LUV has been the topic of a number of other reports. HSBC raised shares of Southwest Airlines from a “reduce” rating to a “hold” rating and lifted their target price for the company from $24.40 to $36.10 in a report on Friday. JPMorgan Chase & Co. cut their target price on shares of Southwest Airlines from $58.00 to $56.00 in a report on Friday, March 27th. Bank of America dropped their price objective on shares of Southwest Airlines from $42.00 to $40.00 and set an “underperform” rating on the stock in a research note on Wednesday, April 1st. BMO Capital Markets dropped their price objective on shares of Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating on the stock in a research note on Tuesday, March 31st. Finally, Susquehanna dropped their price objective on shares of Southwest Airlines from $55.00 to $42.00 and set a “neutral” rating on the stock in a research note on Thursday, April 2nd. Nine analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, Southwest Airlines currently has an average rating of “Hold” and an average target price of $44.31.

Southwest Airlines Stock Performance

Shares of Southwest Airlines stock opened at $39.46 on Friday. The firm’s fifty day simple moving average is $42.72 and its 200-day simple moving average is $40.24. The stock has a market capitalization of $19.38 billion, a price-to-earnings ratio of 25.46, a PEG ratio of 0.43 and a beta of 1.19. Southwest Airlines has a 12 month low of $25.89 and a 12 month high of $55.11. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.45.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, meeting analysts’ consensus estimates of $0.45. The business had revenue of $7.25 billion for the quarter, compared to analysts’ expectations of $8.46 billion. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The company’s quarterly revenue was up 12.8% on a year-over-year basis. During the same period in the previous year, the company posted ($0.13) EPS. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. As a group, equities analysts forecast that Southwest Airlines will post 2.71 earnings per share for the current year.

Hedge Funds Weigh In On Southwest Airlines

Several institutional investors have recently bought and sold shares of the company. Franklin Resources Inc. increased its stake 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 period. Ameriprise Financial Inc. increased its stake in Southwest Airlines by 43.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock valued at $393,615,000 after buying an additional 3,753,183 shares during the period. JPMorgan Chase & Co. boosted its position in shares of Southwest Airlines by 13.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 12,218,086 shares of the airline’s stock worth $389,879,000 after purchasing an additional 1,459,235 shares in the last quarter. Invesco Ltd. boosted its position in shares of Southwest Airlines by 9.2% during the 3rd quarter. Invesco Ltd. now owns 6,837,197 shares of the airline’s stock worth $218,175,000 after purchasing an additional 577,326 shares in the last quarter. Finally, Morgan Stanley boosted its position in shares of Southwest Airlines by 4.1% during the 4th quarter. Morgan Stanley now owns 6,228,475 shares of the airline’s stock worth $257,423,000 after purchasing an additional 244,891 shares in the last quarter. 80.82% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about 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

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.