Southwest Airlines (NYSE:LUV) Stock Rating Upgraded by JPMorgan Chase & Co.

Southwest Airlines (NYSE:LUV) was upgraded by equities research analysts at JPMorgan Chase & Co. from an “underweight” rating to an “overweight” rating in a research note issued on Friday, MarketBeat Ratings reports. The brokerage currently has a $60.00 target price on the airline’s stock, up from their previous target price of $36.00. JPMorgan Chase & Co.‘s target price points to a potential upside of 34.97% from the stock’s previous close.

Other research analysts have also issued reports about the company. Jefferies Financial Group lifted their price objective on Southwest Airlines from $33.00 to $34.00 and gave the stock a “hold” rating in a research report on Tuesday, December 2nd. Bank of America raised their target price on Southwest Airlines from $28.00 to $37.00 and gave the stock an “underperform” rating in a research note on Tuesday, January 6th. Raymond James Financial lifted their target price on Southwest Airlines from $42.00 to $49.00 and gave the stock an “outperform” rating in a report on Friday, December 19th. TD Cowen boosted their price target on Southwest Airlines from $31.00 to $42.00 and gave the company a “hold” rating in a research note on Friday, December 12th. Finally, Sanford C. Bernstein increased their price target on Southwest Airlines from $31.00 to $34.00 and gave the stock a “market perform” rating in a report on Thursday, November 20th. Six analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Southwest Airlines presently has an average rating of “Hold” and an average target price of $42.11.

Southwest Airlines Stock Up 3.6%

Shares of NYSE LUV opened at $44.46 on Friday. The company’s 50 day moving average price is $37.32 and its 200-day moving average price is $34.26. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.42 and a current ratio of 0.49. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $45.02. The company has a market capitalization of $22.99 billion, a P/E ratio of 68.39, a price-to-earnings-growth ratio of 0.27 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Tuesday, February 6th. The airline reported ($0.38) earnings per share for the quarter. The firm had revenue of $6.17 billion for the quarter. Southwest Airlines had a return on equity of 6.39% and a net margin of 1.38%. Equities analysts forecast that Southwest Airlines will post 1.55 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. RWA Wealth Partners LLC bought a new position in shares of Southwest Airlines in the second quarter valued at approximately $1,652,000. Fort Washington Investment Advisors Inc. OH raised its position in Southwest Airlines by 1.5% in the 2nd quarter. Fort Washington Investment Advisors Inc. OH now owns 1,258,993 shares of the airline’s stock valued at $40,842,000 after buying an additional 18,270 shares during the last quarter. Howard Capital Management Inc. lifted its stake in Southwest Airlines by 8.3% during the 2nd quarter. Howard Capital Management Inc. now owns 127,218 shares of the airline’s stock valued at $4,150,000 after acquiring an additional 9,739 shares in the last quarter. Contravisory Investment Management Inc. bought a new stake in shares of Southwest Airlines in the 2nd quarter worth $530,000. Finally, Gradient Investments LLC raised its holdings in shares of Southwest Airlines by 5.4% in the third quarter. Gradient Investments LLC now owns 578,088 shares of the airline’s stock valued at $18,447,000 after purchasing an additional 29,665 shares during the last quarter. 80.82% of the stock is owned by institutional investors.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Rare double-upgrade from JPMorgan — JPMorgan upgraded LUV from underweight to overweight and lifted its price target to $60, a large upward move that traders say is the main catalyst for the rally as it signals materially higher earnings expectations. Barron’s: Rare Double Upgrade
• Positive Sentiment: Multiple price-target raises — Citi and UBS both bumped targets (Citi to $44, UBS to $45), reinforcing the analyst trend higher and supporting upside in the stock as models are re-priced for better forward earnings. Citi price target raise
• Positive Sentiment: Broader analyst optimism — Citigroup and other firms published bullish commentary forecasting notable price appreciation based on improving fundamentals and potential margin recovery. Citigroup forecast
• Neutral Sentiment: Susquehanna raised its target to $45 but kept a “neutral” rating — the higher target supports the rally but the retained rating tempers how decisive the firm views near-term upside. Benzinga: Susquehanna note
• Neutral Sentiment: Strategic/cabin changes under review — articles on Southwest’s cabin revamp and assigned seating argue these initiatives could reshape unit revenue and customer experience, but benefits depend on execution and timing. Yahoo: Cabin revamp
• Neutral Sentiment: New marketing/partnerships — a legacy partnership with the Chicago Cubs is positive PR and revenue/brand-supportive, but unlikely to move near-term fundamentals materially. MLB press release
• Neutral Sentiment: Mixed analyst landscape — several firms remain cautious/hold-rated (e.g., Wells Fargo), so while sentiment is tilting positive, coverage is not uniformly bullish. Wells Fargo hold

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.