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

Southwest Airlines (NYSE:LUV) had its price target increased by equities research analysts at Evercore ISI from $40.00 to $45.00 in a report released on Thursday,Benzinga reports. The firm presently has an “in-line” rating on the airline’s stock. Evercore ISI’s price objective would indicate a potential downside of 5.28% from the company’s previous close.

A number of other research firms have also recently issued reports on LUV. Raymond James Financial lifted their price target 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. JPMorgan Chase & Co. raised shares of Southwest Airlines from an “underweight” rating to an “overweight” rating and increased their price objective for the company from $36.00 to $60.00 in a report on Friday, January 9th. Jefferies Financial Group lifted their target price on shares of Southwest Airlines from $42.00 to $45.00 and gave the company a “hold” rating in a research report on Monday, January 26th. UBS Group upped their price target on shares of Southwest Airlines from $43.00 to $45.00 and gave the stock a “neutral” rating in a research report on Tuesday, January 6th. Finally, TD Cowen lifted their price objective on Southwest Airlines from $31.00 to $42.00 and gave the stock a “hold” rating in a report on Friday, December 12th. Seven analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $44.76.

Southwest Airlines Trading Down 2.0%

LUV stock opened at $47.51 on Thursday. The company’s 50-day simple moving average is $40.71 and its 200-day simple moving average is $35.21. The company has a quick ratio of 0.42, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $49.85. The firm has a market cap of $24.57 billion, a P/E ratio of 56.56, a PEG ratio of 0.44 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.02. The firm had revenue of $7.44 billion during the quarter, compared to analyst estimates 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 for the quarter was up 7.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $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, equities analysts forecast that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Institutional Investors Weigh In On Southwest Airlines

A number of large investors have recently made changes to their positions in the stock. Elevation Point Wealth Partners LLC acquired a new position in Southwest Airlines during the second quarter worth $25,000. GHP Investment Advisors Inc. purchased a new position in shares of Southwest Airlines during the 4th quarter worth $26,000. Corsicana & Co. acquired a new position in shares of Southwest Airlines during the 3rd quarter valued at about $27,000. Quent Capital LLC purchased a new stake in shares of Southwest Airlines in the third quarter valued at about $27,000. Finally, Optima Capital LLC acquired a new stake in Southwest Airlines during the fourth quarter worth about $27,000. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Southwest Airlines

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.