JPMorgan Chase & Co. Lowers Southwest Airlines (NYSE:LUV) Price Target to $59.00

Southwest Airlines (NYSE:LUV) had its price target dropped by analysts at JPMorgan Chase & Co. from $60.00 to $59.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has an “overweight” rating on the airline’s stock. JPMorgan Chase & Co.‘s price objective would suggest a potential upside of 30.56% from the stock’s current price.

Several other brokerages have also commented on LUV. HSBC upgraded shares of Southwest Airlines from a “reduce” rating to a “hold” rating and upped their price objective for the stock from $24.40 to $36.10 in a report on Friday, April 24th. Bank of America lifted their target price on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an “underperform” rating in a report on Wednesday, July 1st. Wells Fargo & Company boosted their target price on Southwest Airlines from $44.00 to $50.00 and gave the company an “equal weight” rating in a research report on Tuesday, June 30th. Weiss Ratings upgraded Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday. Finally, Jefferies Financial Group raised their price target on Southwest Airlines from $44.00 to $50.00 and gave the stock a “hold” rating in a research report on Wednesday, July 1st. Nine equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, Southwest Airlines has a consensus rating of “Hold” and a consensus price target of $49.55.

Southwest Airlines Trading Up 1.1%

NYSE LUV opened at $45.19 on Friday. The firm’s 50-day moving average is $46.01 and its two-hundred day moving average is $44.29. Southwest Airlines has a 12 month low of $28.98 and a 12 month high of $55.11. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.41. The stock has a market capitalization of $22.09 billion, a P/E ratio of 27.72, a PEG ratio of 0.37 and a beta of 1.12.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.42. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The company had revenue of $8.72 billion during the quarter, compared to analyst estimates of $8.58 billion. During the same quarter last year, the firm posted $0.43 earnings per share. Southwest Airlines’s revenue was up 16.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. On average, sell-side analysts anticipate that Southwest Airlines will post 3.59 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in LUV. AQR Capital Management LLC boosted its position in Southwest Airlines by 100.6% in the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock valued at $1,303,000 after buying an additional 19,729 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Southwest Airlines by 5.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after acquiring an additional 3,141 shares during the period. Empowered Funds LLC increased its position in shares of Southwest Airlines by 7.6% during the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after acquiring an additional 527 shares during the period. EverSource Wealth Advisors LLC raised its stake in shares of Southwest Airlines by 73.4% in the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock valued at $185,000 after acquiring an additional 2,408 shares in the last quarter. Finally, First Trust Advisors LP raised its stake in shares of Southwest Airlines by 47.4% in the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock valued at $9,979,000 after acquiring an additional 98,986 shares in the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: BMO Capital Markets raised its price target on Southwest Airlines to $60 from $58.50 and reiterated an outperform rating, signaling confidence in further upside after the company’s earnings beat. Benzinga report
• Positive Sentiment: Barclays kept a buy rating on Southwest Airlines, reinforcing the bullish view from analysts following the airline’s latest quarter. Barclays article
• Positive Sentiment: Southwest reported second-quarter adjusted EPS of $0.94, well above estimates, and record quarterly revenue, showing improved earnings power and solid demand. Yahoo Finance report
• Positive Sentiment: Several earnings recaps highlighted stronger fares, commercial gains, and margin expansion, suggesting the company’s transformation efforts are starting to show through in results. Zacks report

About Southwest Airlines

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.