Southwest Airlines (NYSE:LUV) Stock Price Expected to Rise, Evercore Analyst Says

Southwest Airlines (NYSE:LUV) had its target price raised by investment analysts at Evercore from $43.00 to $44.00 in a research report issued to clients and investors on Friday,MarketScreener reports. Evercore’s target price indicates a potential upside of 11.50% from the stock’s current price.

A number of other brokerages have also recently weighed in on LUV. Seaport Research Partners raised their price target on Southwest Airlines from $57.00 to $58.00 in a research report on Thursday, January 29th. Rothschild & Co Redburn raised their price target on Southwest Airlines from $27.00 to $35.00 and gave the company a “sell” rating in a research report on Thursday, March 5th. Wall Street Zen cut Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, March 14th. BMO Capital Markets dropped their price target on Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating for the company in a research report on Tuesday, March 31st. Finally, TD Cowen decreased their price objective on Southwest Airlines from $56.00 to $46.00 and set a “buy” rating on the stock in a research note on Thursday, April 2nd. Nine investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $44.31.

Southwest Airlines Trading Up 4.5%

Shares of LUV stock opened at $39.46 on Friday. Southwest Airlines has a fifty-two week low of $25.89 and a fifty-two week high of $55.11. The stock has a market cap of $19.38 billion, a P/E ratio of 25.46, a P/E/G ratio of 0.43 and a beta of 1.19. The business has a fifty day simple moving average of $42.72 and a 200-day simple moving average of $40.24. The company has a quick ratio of 0.45, a current ratio of 0.48 and a debt-to-equity ratio of 0.66.

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

Institutional Trading of Southwest Airlines

Hedge funds have recently bought and sold shares of the company. SHP Wealth Management acquired a new stake in Southwest Airlines during the fourth quarter worth approximately $25,000. GHP Investment Advisors Inc. acquired a new stake in Southwest Airlines during the fourth quarter worth approximately $26,000. Entrust Financial LLC acquired a new stake in Southwest Airlines during the fourth quarter worth approximately $26,000. Los Angeles Capital Management LLC acquired a new stake in Southwest Airlines during the fourth quarter worth approximately $26,000. Finally, Optima Capital LLC acquired a new stake in Southwest Airlines during the fourth quarter worth approximately $27,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

Southwest Airlines News Roundup

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.