UBS Group Forecasts Strong Price Appreciation for Southwest Airlines (NYSE:LUV) Stock

Southwest Airlines (NYSE:LUV) had its price objective raised by UBS Group from $45.00 to $51.00 in a research report issued on Monday,Benzinga reports. The firm presently has a “neutral” rating on the airline’s stock. UBS Group’s target price suggests a potential downside of 0.36% from the company’s previous close.

A number of other brokerages have also recently issued reports on LUV. Wells Fargo & Company lifted their price objective on shares of Southwest Airlines from $45.00 to $50.00 and gave the company an “equal weight” rating in a report on Friday, January 30th. BMO Capital Markets raised shares of Southwest Airlines from a “market perform” rating to an “outperform” rating and raised their price target for the company from $43.00 to $57.50 in a research report on Friday, January 30th. Evercore ISI boosted their price objective on Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a report on Thursday, January 29th. The Goldman Sachs Group raised their target price on Southwest Airlines from $29.00 to $32.00 and gave the company a “sell” rating in a report on Friday, January 30th. Finally, Sanford C. Bernstein upped 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. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $45.76.

Southwest Airlines Trading Up 3.1%

Shares of Southwest Airlines stock opened at $51.18 on Monday. The stock has a market capitalization of $26.47 billion, a PE ratio of 60.93, a price-to-earnings-growth ratio of 0.36 and a beta of 1.15. Southwest Airlines has a 52 week low of $23.82 and a 52 week high of $51.21. The stock has a 50 day moving average price of $41.37 and a two-hundred day moving average price of $35.38. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52.

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, topping analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The company had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. During the same period last year, the business earned $0.56 EPS. Southwest Airlines’s quarterly revenue was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. As a group, equities analysts anticipate that Southwest Airlines will post 1.55 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Southwest Airlines

Several large investors have recently made changes to their positions in LUV. Elevation Point Wealth Partners LLC purchased a new position in shares of Southwest Airlines in the 2nd quarter worth about $25,000. GHP Investment Advisors Inc. purchased a new position in Southwest Airlines in the fourth quarter valued at about $26,000. Corsicana & Co. bought a new position in shares of Southwest Airlines during the 3rd quarter valued at approximately $27,000. Quent Capital LLC bought a new position in shares of Southwest Airlines during the 3rd quarter valued at approximately $27,000. Finally, Optima Capital LLC purchased a new stake in shares of Southwest Airlines during the 4th quarter worth approximately $27,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Key Southwest Airlines News

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

• Positive Sentiment: Q4 EPS beat and full-year guidance — Southwest reported Q4 EPS of $0.58, beating estimates, and set FY2026 guidance that implies stronger profitability, supporting investor optimism. Southwest Airlines (LUV) Posts $7.4B Revenue for Q4 2025 as EPS Beats Guidance
• Positive Sentiment: Seating and fee overhaul aimed at higher unit revenue — Management is overhauling seating and ancillary fees to lift per-passenger revenue and profit targets for 2026, a structural move investors view as earnings-accretive. Southwest Overhauls Seating And Fees As Profit Targets Soar For 2026
• Positive Sentiment: Analyst target uplifts and upgrades — Susquehanna raised its price target to $55 (neutral rating) and BMO upgraded the stock, signaling buy-side support for the recovery narrative. These actions help underpin the stock’s rally. Benzinga coverage of analyst moves Southwest Airlines (NYSE:LUV) Upgraded at BMO Capital Markets
• Positive Sentiment: Unusual call buying and momentum rankings — Heavy call-option activity and multiple Zacks momentum/strong-buy listings have attracted speculative and momentum buyers. Best Momentum Stocks to Buy for February 2nd
• Neutral Sentiment: Promotional marketing (free-flights) — Southwest is running a limited-time free-flights promotion that should lift bookings/PR but could pressure near-term unit revenues; impact depends on scale and duration. Southwest Airlines brings back free flights—limited-time
• Neutral Sentiment: Mixed analyst stance — Several firms raised price targets (UBS, Jefferies, others) but maintained neutral/hold ratings, leaving room for upside but signaling limited near-term consensus conviction. Benzinga coverage of analyst moves
• Negative Sentiment: Cautionary commentary and slight revenue miss — Commentators (e.g., Jim Cramer) flagged that some new policies are risky, and Q4 revenue of $7.44B missed the ~$7.51B consensus — a reminder upside is not guaranteed and execution risk remains. Jim Cramer Notes “Southwest Took a Big Risk With Some New Policies” Southwest Airlines (LUV) Posts $7.4B Revenue for Q4 2025 as EPS Beats Guidance

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.