Southwest Airlines (NYSE:LUV) Stock Price Expected to Rise, Rothschild & Co Redburn Analyst Says

Southwest Airlines (NYSE:LUV) had its target price increased by Rothschild & Co Redburn from $27.00 to $35.00 in a report released on Thursday,Benzinga reports. The brokerage presently has a “sell” rating on the airline’s stock. Rothschild & Co Redburn’s price target would suggest a potential downside of 15.60% from the stock’s previous close.

Several other equities research analysts have also issued reports on the stock. Citigroup lifted their price target on shares of Southwest Airlines from $44.00 to $54.00 in a report on Tuesday, February 3rd. Bank of America increased their price objective on Southwest Airlines from $37.00 to $42.00 and gave the company an “underperform” rating in a report on Friday, January 30th. Evercore raised their target price on Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a research report on Thursday, January 29th. Seaport Research Partners boosted their target price on Southwest Airlines from $57.00 to $58.00 in a research note on Thursday, January 29th. Finally, BNP Paribas Exane upped their price target on Southwest Airlines from $19.00 to $24.00 and gave the company an “underperform” rating in a research report on Monday, December 8th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, eight have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $48.29.

Southwest Airlines Price Performance

Shares of NYSE:LUV opened at $41.47 on Thursday. The company has a market capitalization of $20.38 billion, a P/E ratio of 49.37, a price-to-earnings-growth ratio of 0.31 and a beta of 1.10. The company’s 50-day moving average is $46.70 and its 200 day moving average is $38.34. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52. Southwest Airlines has a fifty-two week low of $23.82 and a fifty-two week high of $55.11.

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

Institutional Trading of Southwest Airlines

A number of institutional investors have recently added to or reduced their stakes in the stock. Arrowstreet Capital Limited Partnership grew its holdings in Southwest Airlines by 2,403.8% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 10,120,368 shares of the airline’s stock valued at $328,305,000 after buying an additional 9,716,160 shares in the last quarter. Norges Bank purchased a new stake in shares of Southwest Airlines in the fourth quarter worth about $172,038,000. Ameriprise Financial Inc. lifted its holdings in shares of Southwest Airlines by 43.7% in the third quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock worth $393,615,000 after buying an additional 3,753,183 shares in the last quarter. SG Americas Securities LLC boosted its position in shares of Southwest Airlines by 2,468.4% in the fourth quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock valued at $155,085,000 after acquiring an additional 3,606,255 shares during the period. Finally, Massachusetts Financial Services Co. MA bought a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $143,450,000. Hedge funds and other 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: Analyst support and upside targets — Several firms still carry Overweight/Outperform views and the recent compilation of analyst targets shows a median near $49, implying potential upside from current levels. Quiver Quant: Analyst Ratings & Targets
• Neutral Sentiment: Longer-term value debate — Some commentary argues the pullback could create a buying opportunity for investors focused on the airline’s multi-year recovery narrative, but this is contested and depends on fuel and execution risks. Yahoo Finance: Is LUV Still Attractive?
• Negative Sentiment: Geopolitical escalation raises fuel-cost and demand fears — Coverage links the U.S.–Israel–Iran tensions to a surge in crude/jet-fuel expectations and a sector-wide selloff, pressuring Southwest because fuel is a major cost and demand for discretionary travel can wobble in crises. Benzinga: Why LUV Is Falling
• Negative Sentiment: Broader oil-driven sector pain — Market notes and price-action analysis tie LUV’s drop to a crude-driven rout across carriers; higher fuel translates to margin risk and triggers rotation away from fuel-sensitive travel names. Quiver Quant: Oil Pressure on Airlines
• Negative Sentiment: Execution and sentiment concerns — Analysis highlights a “double whammy” of Southwest’s structural/logistics challenges (model overhaul) plus renewed fuel inflation that could squeeze margins and investor confidence. Forbes: How Low Can LUV Go?
• Negative Sentiment: Reputational/retail risk from policy changes — Coverage of new customer policies has sparked negative consumer reaction, which can weigh on demand and brand premium that historically differentiated Southwest. TheStreet: Policy Backlash
• Negative Sentiment: Mixed institutional activity & price-target shifts — Large institutional trimming and at least one price-target adjustment (Rothschild raised its target but kept a sell stance) add to near-term uncertainty about sentiment among big holders. Benzinga: Price Target Note

Southwest Airlines Company Profile

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.