Southwest Airlines (NYSE:LUV) Price Target Raised to $55.00

Southwest Airlines (NYSE:LUV) had its target price lifted by Morgan Stanley from $50.00 to $55.00 in a research note published on Friday morning,Benzinga reports. Morgan Stanley currently has an overweight rating on the airline’s stock.

Several other equities analysts also recently commented on LUV. Barclays upgraded shares of Southwest Airlines from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $34.00 to $56.00 in a research note on Tuesday, December 16th. Jefferies Financial Group increased their target price on shares of Southwest Airlines from $42.00 to $45.00 and gave the stock a “hold” rating in a research report on Monday, January 26th. UBS Group lifted their price target on shares of Southwest Airlines from $43.00 to $45.00 and gave the company a “neutral” rating in a research report on Tuesday, January 6th. Evercore ISI boosted their price target on Southwest Airlines from $40.00 to $45.00 and gave the company an “in-line” rating in a research note on Thursday. Finally, Wells Fargo & Company assumed coverage on Southwest Airlines in a research report on Thursday, December 18th. They set an “equal weight” rating and a $45.00 price target on the stock. Seven research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, Southwest Airlines presently has an average rating of “Hold” and a consensus price target of $44.76.

Southwest Airlines Price Performance

Southwest Airlines stock opened at $47.51 on Friday. The company has a market capitalization of $24.57 billion, a price-to-earnings ratio of 56.56, a PEG ratio of 0.37 and a beta of 1.15. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57. Southwest Airlines has a 12 month low of $23.82 and a 12 month high of $49.85. The stock’s 50 day moving average is $40.71 and its 200-day moving average is $35.18.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The business had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. During the same period in the previous year, the company posted $0.56 EPS. The firm’s quarterly 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. Equities research analysts expect that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Friday, December 26th were paid a dividend of $0.18 per share. The ex-dividend date was Friday, December 26th. This represents a $0.72 annualized dividend and a yield of 1.5%. Southwest Airlines’s dividend payout ratio is presently 85.71%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. GHP Investment Advisors Inc. acquired a new position in Southwest Airlines during the fourth quarter worth about $26,000. Optima Capital LLC bought a new stake in shares of Southwest Airlines during the 4th quarter valued at approximately $27,000. Lodestone Wealth Management LLC acquired a new position in Southwest Airlines during the 4th quarter worth approximately $29,000. Elevation Point Wealth Partners LLC bought a new position in Southwest Airlines in the 2nd quarter valued at approximately $25,000. Finally, Flagship Harbor Advisors LLC bought a new position in Southwest Airlines in the 4th quarter valued at approximately $35,000. Institutional investors own 80.82% of the company’s stock.

Southwest Airlines News Summary

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

• Positive Sentiment: Management issued robust FY‑2026 guidance (at least $4.00 adjusted EPS) and signaled material upside from new seat/ancillary fees — the guidance and new revenue levers are the main driver of recent upside. Q4 Earnings Highlights
• Positive Sentiment: Q4 results beat EPS estimates ($0.58 vs. $0.56) which reinforced confidence in the recovery and margin improvement. Earnings Beat
• Positive Sentiment: Multiple bullish analyst moves raised upside expectations — Morgan Stanley to $55 (overweight), BMO upgraded to outperform with $57.50, Wells Fargo and TD Cowen lifted targets toward $50 — these upgrades support the stock’s upside narrative. Analyst Coverage
• Neutral Sentiment: Industry and stock‑screen pieces (Zacks, Seeking Alpha) compare LUV to peers and discuss valuation; helpful for context but less likely to drive immediate moves. Peer Comparison
• Negative Sentiment: Near‑term guidance is mixed: Q1 EPS guidance of ~$0.45 came in below Street estimates, and revenue trends in the quarter lagged expectations — a near‑term headwind for sentiment. Guidance & Results
• Negative Sentiment: Some large firms remain bearish or cautious despite raising targets — Goldman Sachs raised its PT to $32 but maintains a “sell” rating, and Bank of America kept an “underperform” stance with a $42 PT — these lower‑PT calls can cap rallies and prompt profit‑taking. Goldman / BofA Notes

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.