The Goldman Sachs Group Increases Southwest Airlines (NYSE:LUV) Price Target to $32.00

Southwest Airlines (NYSE:LUV) had its target price boosted by research analysts at The Goldman Sachs Group from $29.00 to $32.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has a “sell” rating on the airline’s stock. The Goldman Sachs Group’s price target would indicate a potential downside of 32.72% from the stock’s current price.

A number of other equities analysts have also recently commented on LUV. TD Cowen lifted their price objective on shares of Southwest Airlines from $42.00 to $50.00 and gave the stock a “hold” rating in a research report on Friday. Citigroup lifted their target price on shares of Southwest Airlines from $38.00 to $44.00 and gave the stock a “neutral” rating in a report on Wednesday, January 7th. Deutsche Bank Aktiengesellschaft upped their price target on shares of Southwest Airlines from $40.00 to $48.00 and gave the company a “buy” rating in a research note on Friday, December 12th. Morgan Stanley raised their price objective on shares of Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, BMO Capital Markets raised Southwest Airlines from a “market perform” rating to an “outperform” rating and upped their target price for the company from $43.00 to $57.50 in a research report on Friday. Seven investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $44.76.

Southwest Airlines Stock Performance

LUV stock traded down $0.94 during trading hours on Friday, reaching $47.56. The stock had a trading volume of 6,499,361 shares, compared to its average volume of 9,822,214. The stock has a 50-day simple moving average of $40.42 and a 200 day simple moving average of $35.14. Southwest Airlines has a fifty-two week low of $23.82 and a fifty-two week high of $49.85. The stock has a market capitalization of $24.60 billion, a PE ratio of 56.61, a price-to-earnings-growth ratio of 0.37 and a beta of 1.16. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.49 and a quick ratio of 0.42.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. The company had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.11%. Southwest Airlines’s quarterly revenue was up 7.4% compared to the same quarter last year. During the same period in the prior year, the firm 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. Analysts predict that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Institutional Investors Weigh In On Southwest Airlines

Large investors have recently bought and sold shares of the company. Transcend Capital Advisors LLC lifted its stake in shares of Southwest Airlines by 4.2% during the 4th quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock worth $278,000 after acquiring an additional 272 shares during the last quarter. Ameriflex Group Inc. lifted its position in shares of Southwest Airlines by 7.1% during the second quarter. Ameriflex Group Inc. now owns 4,690 shares of the airline’s stock worth $148,000 after purchasing an additional 310 shares during the last quarter. Asset Management One Co. Ltd. boosted its stake in shares of Southwest Airlines by 1.7% during the fourth quarter. Asset Management One Co. Ltd. now owns 19,268 shares of the airline’s stock valued at $792,000 after purchasing an additional 315 shares during the period. Benjamin Edwards Inc. grew its holdings in shares of Southwest Airlines by 1.4% in the second quarter. Benjamin Edwards Inc. now owns 24,857 shares of the airline’s stock worth $806,000 after purchasing an additional 333 shares during the last quarter. Finally, GAMMA Investing LLC increased its stake in Southwest Airlines by 2.4% in the 3rd quarter. GAMMA Investing LLC now owns 14,285 shares of the airline’s stock worth $456,000 after buying an additional 341 shares during the period. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Management guided FY?2026 adjusted EPS of at least $4.00 (vs. ~$0.93 in 2025), citing revenue initiatives and cost discipline — a large, market?moving beat that underpins the recent rally. PR Newswire: Southwest 4Q/2025 Results & Guidance
• Positive Sentiment: Strategic shift — ending 54 years of “open seating,” adding assigned seats and new ancillary fees (bag/seat upsells) — is being priced as a sustainable revenue and margin lever by investors and analysts. WSJ: Assigned Seating & Profit Surge
• Positive Sentiment: Several bullish analyst moves followed the results: Morgan Stanley raised its target to $55 (overweight) and BMO upgraded to outperform with a $57.50 target — both support upside expectations among some Wall?Street desks. Benzinga: Analyst Calls
• Neutral Sentiment: Q4 showed mixed fundamentals: EPS modestly beat estimates while revenue slightly missed — investors are weighing margin improvement versus top?line cadence. Zacks: Q4 Results Summary
• Neutral Sentiment: Market commentary and comparisons (Zacks, Seeking Alpha, 24/7 Wall St.) are driving headlines, but these pieces mainly contextualize the earnings/guidance rather than add new catalysts. Zacks: Sector Performance
• Negative Sentiment: Not all analysts are bullish — Bank of America kept an “underperform” stance despite lifting its target to $42, and several other targets remain below the current price, creating mixed sell?side signals and potential pressure on the stock. Benzinga: Analyst Targets
• Negative Sentiment: Near?term cadence risk: Southwest guided Q1 2026 EPS ~ $0.45 (below consensus ~ $0.57), creating a possible short?term performance headwind even as full?year guidance is strong. PR Newswire: Guidance Details
• Negative Sentiment: Options market activity showed a large uptick in put buying (notable increase in put volume), indicating some traders are hedging or betting on downside/volatility. (market data entry)

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.