Evercore ISI Forecasts Strong Price Appreciation for Southwest Airlines (NYSE:LUV) Stock

Southwest Airlines (NYSE:LUV) had its price target boosted by equities researchers at Evercore ISI from $40.00 to $45.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has an “in-line” rating on the airline’s stock. Evercore ISI’s price objective would suggest a potential upside of 9.93% from the company’s previous close.

Several other equities research analysts also recently commented on the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Southwest Airlines in a report on Monday, December 29th. Raymond James Financial boosted their target price on shares of Southwest Airlines from $42.00 to $49.00 and gave the stock an “outperform” rating in a research report on Friday, December 19th. Susquehanna lifted their price target on shares of Southwest Airlines from $35.00 to $45.00 and gave the stock a “neutral” rating in a research note on Friday, January 9th. Wells Fargo & Company began coverage on shares of Southwest Airlines in a research report on Thursday, December 18th. They issued an “equal weight” rating and a $45.00 price objective for the company. Finally, Citigroup lifted their price objective on Southwest Airlines from $38.00 to $44.00 and gave the stock a “neutral” rating in a report on Wednesday, January 7th. Six analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Southwest Airlines presently has an average rating of “Hold” and an average target price of $42.63.

Southwest Airlines Price Performance

LUV opened at $40.94 on Thursday. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $45.02. The company has a 50 day moving average of $40.07 and a two-hundred day moving average of $35.05. The company has a market cap of $21.17 billion, a P/E ratio of 62.98, a P/E/G ratio of 0.37 and a beta of 1.16. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.52.

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, topping analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a net margin of 1.38% and a return on equity of 6.39%. The firm had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. During the same period in the prior year, the company earned $0.56 EPS. The firm’s revenue was up 7.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. On average, analysts expect that Southwest Airlines will post 1.55 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. GHP Investment Advisors Inc. bought a new position in Southwest Airlines during the fourth quarter valued at about $26,000. Optima Capital LLC bought a new position in shares of Southwest Airlines during the 4th quarter valued at about $27,000. Lodestone Wealth Management LLC bought a new stake in shares of Southwest Airlines in the 4th quarter worth approximately $29,000. Elevation Point Wealth Partners LLC acquired a new position in Southwest Airlines in the second quarter worth approximately $25,000. Finally, Flagship Harbor Advisors LLC bought a new position in shares of Southwest Airlines in the fourth quarter valued at $35,000. Institutional investors own 80.82% of the company’s stock.

Key Stories Impacting Southwest Airlines

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

• Positive Sentiment: Management raised 2026 adjusted EPS guidance to at least $4.00, calling for a large profit surge driven by its business transformation and new revenue streams. This outlook underpins longer?term upside expectations. SOUTHWEST AIRLINES REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
• Positive Sentiment: Q4 EPS beat consensus (reported $0.58 vs. $0.56 est.), showing underlying margin improvement and operational gains that support profitability momentum. Southwest Airlines (LUV) Surpasses Q4 Earnings Estimates
• Positive Sentiment: Companywide pricing and product changes — including the end of open seating and bag fees — are being presented as durable revenue levers that should lift yields and margins over 2026. Southwest Forecasts Profit Surge as Assigned?Seating Flights Take Off
• Neutral Sentiment: Revenue grew year?over?year (+7.4% to $7.44B) but slightly missed some top?line estimates, reflecting mixed demand/pricing dynamics that investors will watch for sustainability. Q4 Press Release
• Neutral Sentiment: Some analysts are revising targets (e.g., Jefferies raised its target to $45), highlighting divergent views among sell?side firms on how quickly revenue initiatives convert to durable profits. Jefferies Raises Southwest Price Target to $45
• Negative Sentiment: Q1 2026 EPS guidance of $0.45 is below the street (consensus ~$0.57), creating near?term earnings disappointment and giving traders a reason to trim positions into the quarter.
• Negative Sentiment: Unusual options flow — a large block of put buying — suggests elevated hedging or bearish positioning that can amplify downside price pressure in the short term.

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.