Southwest Airlines (NYSE:LUV) Given New $54.00 Price Target at UBS Group

Southwest Airlines (NYSE:LUV) had its target price hoisted by equities research analysts at UBS Group from $52.00 to $54.00 in a report released on Friday, Benzinga reports. The firm currently has a “buy” rating on the airline’s stock. UBS Group‘s price target suggests a potential upside of 29.55% from the company’s current price.

Several other brokerages have also recently commented on LUV. Jefferies Financial Group upped their target price on shares of Southwest Airlines from $44.00 to $50.00 and gave the company a “hold” rating in a research report on Wednesday, July 1st. Bank of America lifted their price objective on Southwest Airlines from $40.00 to $45.00 and gave the stock an “underperform” rating in a research note on Wednesday, July 1st. Weiss Ratings raised Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, August 18th. The Goldman Sachs Group upped their price objective on Southwest Airlines from $30.00 to $35.00 and gave the company a “sell” rating in a report on Thursday, July 2nd. Finally, BMO Capital Markets cut their target price on Southwest Airlines from $60.00 to $50.00 and set an “outperform” rating on the stock in a research note on Monday, September 28th. Nine research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, Southwest Airlines currently has a consensus rating of “Hold” and a consensus price target of $47.45.

Southwest Airlines Price Performance

Shares of Southwest Airlines stock traded down $0.35 during midday trading on Friday, reaching $41.68. The company had a trading volume of 5,297,349 shares, compared to its average volume of 7,432,312. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.54. The stock has a fifty day simple moving average of $40.62 and a 200 day simple moving average of $42.89. Southwest Airlines has a 1-year low of $29.26 and a 1-year high of $55.11. The company has a market capitalization of $20.39 billion, a price-to-earnings ratio of 25.52, a price-to-earnings-growth ratio of 1.06 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings results on Wednesday, October 21st. The airline reported $0.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.09. Southwest Airlines had a return on equity of 18.07% and a net margin of 3.34%. The business had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.25 billion. During the same quarter in the prior year, the firm posted $0.11 earnings per share. The firm’s revenue for the quarter was up 21.2% compared to the same quarter last year. As a group, equities research analysts forecast that Southwest Airlines will post 2.91 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LUV. NewEdge Advisors LLC lifted its stake in Southwest Airlines by 954.1% in the first quarter. NewEdge Advisors LLC now owns 127,331 shares of the airline’s stock valued at $4,784,000 after buying an additional 115,251 shares in the last quarter. Gradient Investments LLC boosted its holdings in shares of Southwest Airlines by 19.3% in the second quarter. Gradient Investments LLC now owns 539,612 shares of the airline’s stock valued at $27,747,000 after buying an additional 87,146 shares during the period. WINTON GROUP Ltd boosted its holdings in shares of Southwest Airlines by 218.8% in the second quarter. WINTON GROUP Ltd now owns 93,837 shares of the airline’s stock valued at $4,825,000 after buying an additional 64,402 shares during the period. PDT Partners LLC bought a new stake in shares of Southwest Airlines during the second quarter worth $17,913,000. Finally, Bank of New York Mellon Corp raised its holdings in shares of Southwest Airlines by 4.7% during the first quarter. Bank of New York Mellon Corp now owns 3,924,407 shares of the airline’s stock worth $147,440,000 after acquiring an additional 176,742 shares during the period. 80.82% of the stock is owned by institutional investors and hedge funds.

More Southwest Airlines News

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

• Positive Sentiment: Q3 earnings and revenue beat expectations: Adjusted EPS was $0.66 versus the $0.57 consensus estimate, while revenue reached a record $8.42 billion, up 21.2% year over year. Higher fares, strong travel demand and increased ancillary revenue helped Southwest expand its operating margin to 4.5% from 0.5% a year earlier. Southwest Airlines third-quarter earnings report
• Positive Sentiment: Demand and unit revenue trends remain strong: Revenue per available seat mile rose 21.6%, and management indicated that demand remains constructive heading into the fourth quarter. The company expects fourth-quarter unit revenue growth of approximately 19% to 21%, supporting investor confidence in Southwest’s commercial initiatives. LUV Q3 earnings beat on record revenues
• Positive Sentiment: Some analysts remain constructive: JPMorgan lowered its price target modestly to $58 from $59 but maintained an “overweight” rating, implying substantial potential upside from recent levels.
• Neutral Sentiment: Analyst opinion is mixed: Susquehanna reduced its target to $43 from $45, while Wells Fargo initiated or reiterated a “hold” rating. This suggests analysts recognize the operational improvement but remain cautious about fuel costs and profitability.
• Negative Sentiment: Profit guidance was cut: Southwest expects full-year 2026 adjusted EPS of $2.60 to $2.85, versus a consensus estimate of $2.85. Fourth-quarter adjusted EPS guidance of $0.55 to $0.80 is also below the $0.88 consensus estimate. Southwest cuts 2026 profit forecast
• Negative Sentiment: Fuel costs are the key risk: Third-quarter fuel expense increased by $821 million, and management is planning for elevated jet-fuel prices to persist into 2027. Higher costs could limit margin expansion even if fares and demand remain strong. US airlines face fuel cost pressure

About Southwest Airlines

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.