Wells Fargo & Company Increases Southwest Airlines (NYSE:LUV) Price Target to $50.00

Southwest Airlines (NYSE:LUV) had its target price boosted by equities research analysts at Wells Fargo & Company from $45.00 to $50.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has an “equal weight” rating on the airline’s stock. Wells Fargo & Company‘s target price suggests a potential upside of 5.25% from the company’s current price.

Several other equities analysts also recently commented on the company. Barclays raised Southwest Airlines from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $34.00 to $56.00 in a research report on Tuesday, December 16th. TD Cowen upped their price target on shares of Southwest Airlines from $42.00 to $50.00 and gave the stock a “hold” rating in a report on Friday. Citigroup lifted their price objective on shares of Southwest Airlines from $38.00 to $44.00 and gave the company a “neutral” rating in a report on Wednesday, January 7th. Wall Street Zen raised shares of Southwest Airlines from a “sell” rating to a “hold” rating in a research report on Saturday, October 25th. Finally, Seaport Research Partners raised their target price on shares of Southwest Airlines from $57.00 to $58.00 in a research report on Thursday. Seven equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $44.76.

Southwest Airlines Stock Performance

Southwest Airlines stock opened at $47.51 on Friday. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.42. The firm has a market capitalization of $24.57 billion, a P/E ratio of 56.56, a price-to-earnings-growth ratio of 0.44 and a beta of 1.16. Southwest Airlines has a 1-year low of $23.82 and a 1-year high of $49.85. The company’s 50-day moving average is $40.71 and its 200 day moving average is $35.20.

Southwest Airlines (NYSE:LUV) last announced its earnings results 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 return on equity of 6.18% and a net margin of 1.57%.The business had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.51 billion. During the same quarter in the previous year, the business earned $0.56 earnings per share. The company’s revenue for the quarter 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. Research analysts forecast that Southwest Airlines will post 1.55 EPS for the current year.

Institutional Trading of Southwest Airlines

A number of hedge funds have recently bought and sold shares of LUV. Elevation Point Wealth Partners LLC bought a new position in shares of Southwest Airlines in the 2nd quarter worth $25,000. GHP Investment Advisors Inc. purchased a new position in Southwest Airlines in the fourth quarter valued at about $26,000. Corsicana & Co. bought a new position in Southwest Airlines in the third quarter worth about $27,000. Quent Capital LLC purchased a new stake in shares of Southwest Airlines during the third quarter valued at about $27,000. Finally, Optima Capital LLC bought a new stake in shares of Southwest Airlines in the 4th quarter valued at about $27,000. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Southwest Airlines News Summary

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.