TD Cowen Increases Southwest Airlines (NYSE:LUV) Price Target to $50.00

Southwest Airlines (NYSE:LUV) had its price objective increased by equities research analysts at TD Cowen from $42.00 to $50.00 in a note issued to investors on Friday, Marketbeat Ratings reports. The firm currently has a “hold” rating on the airline’s stock. TD Cowen’s price objective points to a potential upside of 5.25% from the company’s previous close.

LUV has been the subject of several other research reports. Barclays raised Southwest Airlines from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $34.00 to $56.00 in a report on Tuesday, December 16th. Bank of America raised their target price on Southwest Airlines from $28.00 to $37.00 and gave the stock an “underperform” rating in a research note on Tuesday, January 6th. Wall Street Zen raised shares of Southwest Airlines from a “sell” rating to a “hold” rating in a research report on Saturday, October 25th. BNP Paribas Exane upped their price objective on shares of Southwest Airlines from $19.00 to $24.00 and gave the company an “underperform” rating in a report on Monday, December 8th. Finally, Seaport Research Partners lifted their target price on shares of Southwest Airlines from $46.00 to $52.00 and gave the stock a “buy” rating in a research note on Friday, January 9th. Seven equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $44.76.

Southwest Airlines Stock Performance

NYSE:LUV opened at $47.51 on Friday. The company has a market cap of $24.57 billion, a P/E ratio of 56.56, a P/E/G ratio of 0.44 and a beta of 1.16. Southwest Airlines has a twelve month low of $23.82 and a twelve month high of $49.85. The company’s 50-day moving average price is $40.71 and its 200-day moving average price is $35.20. The company has a current ratio of 0.52, a quick ratio of 0.42 and a debt-to-equity ratio of 0.57.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.02. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. 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 prior year, the company earned $0.56 EPS. Southwest Airlines’s revenue was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. On average, sell-side analysts forecast that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Institutional Trading of Southwest Airlines

Institutional investors have recently added to or reduced their stakes in the stock. RWA Wealth Partners LLC purchased a new position in Southwest Airlines in the second quarter valued at $1,652,000. Hussman Strategic Advisors Inc. acquired a new stake in Southwest Airlines in the 3rd quarter valued at about $2,010,000. Howard Capital Management Inc. boosted its stake in shares of Southwest Airlines by 8.3% in the 2nd quarter. Howard Capital Management Inc. now owns 127,218 shares of the airline’s stock valued at $4,150,000 after buying an additional 9,739 shares during the period. Gradient Investments LLC grew its position in shares of Southwest Airlines by 5.4% during the third quarter. Gradient Investments LLC now owns 578,088 shares of the airline’s stock worth $18,447,000 after buying an additional 29,665 shares in the last quarter. Finally, Rhumbline Advisers increased its stake in shares of Southwest Airlines by 30.1% during the second quarter. Rhumbline Advisers now owns 1,406,652 shares of the airline’s stock worth $45,632,000 after buying an additional 325,030 shares during the period. Institutional investors and hedge funds own 80.82% of the company’s stock.

More Southwest Airlines News

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

• Positive Sentiment: Management issued robust FY‑2026 guidance (at least $4.00 adjusted EPS) and signaled material upside from new seat/ancillary fees — the guidance and new revenue levers are the main driver of recent upside. Q4 Earnings Highlights
• Positive Sentiment: Q4 results beat EPS estimates ($0.58 vs. $0.56) which reinforced confidence in the recovery and margin improvement. Earnings Beat
• Positive Sentiment: Multiple bullish analyst moves raised upside expectations — Morgan Stanley to $55 (overweight), BMO upgraded to outperform with $57.50, Wells Fargo and TD Cowen lifted targets toward $50 — these upgrades support the stock’s upside narrative. Analyst Coverage
• Neutral Sentiment: Industry and stock‑screen pieces (Zacks, Seeking Alpha) compare LUV to peers and discuss valuation; helpful for context but less likely to drive immediate moves. Peer Comparison
• Negative Sentiment: Near‑term guidance is mixed: Q1 EPS guidance of ~$0.45 came in below Street estimates, and revenue trends in the quarter lagged expectations — a near‑term headwind for sentiment. Guidance & Results
• Negative Sentiment: Some large firms remain bearish or cautious despite raising targets — Goldman Sachs raised its PT to $32 but maintains a “sell” rating, and Bank of America kept an “underperform” stance with a $42 PT — these lower‑PT calls can cap rallies and prompt profit‑taking. Goldman / BofA Notes

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.