Southwest Airlines (NYSE:LUV) Price Target Raised to $55.00 at Susquehanna

Southwest Airlines (NYSE:LUV) had its target price lifted by analysts at Susquehanna from $45.00 to $55.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has a “neutral” rating on the airline’s stock. Susquehanna’s target price would suggest a potential upside of 8.54% from the stock’s current price.

LUV has been the subject of several other reports. Barclays raised Southwest Airlines from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $34.00 to $56.00 in a research report on Tuesday, December 16th. Raymond James Financial raised their price objective on shares of Southwest Airlines from $42.00 to $49.00 and gave the company an “outperform” rating in a research note on Friday, December 19th. Deutsche Bank Aktiengesellschaft increased their target price on shares of Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, December 12th. Evercore ISI increased their target price on Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a report on Thursday, January 29th. Finally, Seaport Research Partners boosted their target price on Southwest Airlines from $57.00 to $58.00 in a research note on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, Southwest Airlines has a consensus rating of “Hold” and a consensus target price of $45.76.

Southwest Airlines Stock Performance

LUV traded up $1.03 during trading hours on Tuesday, hitting $50.67. The company’s stock had a trading volume of 1,029,198 shares, compared to its average volume of 9,917,168. Southwest Airlines has a fifty-two week low of $23.82 and a fifty-two week high of $50.93. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57. The firm has a market capitalization of $26.20 billion, a PE ratio of 60.53, a PEG ratio of 0.37 and a beta of 1.16. The company has a 50-day simple moving average of $41.04 and a 200 day simple moving average of $35.27.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. The firm had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.Southwest Airlines’s revenue was up 7.4% on a year-over-year basis. During the same quarter last year, the business posted $0.56 EPS. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, sell-side analysts expect that Southwest Airlines will post 1.55 EPS for the current year.

Hedge Funds Weigh In On Southwest Airlines

Several hedge funds have recently modified their holdings of the company. Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in shares of Southwest Airlines by 5.7% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 575,639 shares of the airline’s stock worth $23,774,000 after purchasing an additional 31,128 shares during the last quarter. Garner Asset Management Corp purchased a new stake in Southwest Airlines during the 4th quarter valued at about $60,000. QRG Capital Management Inc. increased its position in shares of Southwest Airlines by 8.7% during the fourth quarter. QRG Capital Management Inc. now owns 29,083 shares of the airline’s stock valued at $1,202,000 after buying an additional 2,334 shares during the period. Strs Ohio lifted its position in Southwest Airlines by 250.1% during the fourth quarter. Strs Ohio now owns 39,437 shares of the airline’s stock valued at $1,630,000 after buying an additional 28,172 shares during the period. Finally, Citizens Financial Group Inc. RI bought a new stake in shares of Southwest Airlines during the fourth quarter valued at approximately $233,000. Institutional investors own 80.82% of the company’s stock.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Q4 2025: LUV reported $7.44B revenue and EPS of $0.58, beating consensus EPS and showing year-over-year revenue growth; the company issued FY‑2026 EPS guidance that implies stronger profitability ahead — a primary driver of the rally. Southwest Airlines (LUV) Posts $7.4B Revenue for Q4 2025 as EPS Beats Guidance
• Positive Sentiment: Unusual options activity: traders bought ~52,057 call options (≈94% above average), indicating large speculative or hedged bullish positions that can amplify intraday upside.
• Positive Sentiment: Zacks and other screeners added LUV to several top lists (momentum, value, income / Rank #1 strong-buy additions), which can attract retail/momentum flows and algorithmic buying. Why Southwest Airlines (LUV) is a Top Momentum Stock for the Long-Term
• Positive Sentiment: Analyst moves: UBS raised its price target to $51 (neutral) and multiple outlets report other target upgrades (including a $55 target published by some services) — these raises help sentiment and can support further buying. Benzinga Coverage of Analyst Moves
• Positive Sentiment: BMO upgraded Southwest and industry commentary (e.g., Barchart) highlighted a strong one‑day rebound and signs of a 2026 turnaround, reinforcing narrative that operations and demand are improving. This 1 Overlooked Airline Stock to Be the Best Bet on a Turnaround in 2026 Southwest Airlines Upgraded at BMO Capital Markets
• Neutral Sentiment: A seat-overhaul / customer-loyalty story is getting coverage as management tests product changes to lift yields and repeat business — strategic but longer‑term for the stock. Southwest Airlines Seat Overhaul Tests Earnings Power And Customer Loyalty
• Negative Sentiment: Revenue slightly missed consensus ($7.44B vs. ~$7.51B est.), and airline margins remain thin — these near-term operational headwinds temper how much upside the EPS beat can sustain. Southwest Airlines (LUV) Posts $7.4B Revenue for Q4 2025 as EPS Beats Guidance
• Negative Sentiment: Jefferies reiteration/target shift to $48 (hold) implies limited near-term upside from current levels and gives institutional investors a cautious data point. Benzinga Coverage of Jefferies Rating

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.