BMO Capital Markets Forecasts Strong Price Appreciation for Southwest Airlines (NYSE:LUV) Stock

Southwest Airlines (NYSE:LUV) had its price target hoisted by BMO Capital Markets from $58.50 to $60.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has an “outperform” rating on the airline’s stock. BMO Capital Markets’ target price points to a potential upside of 32.77% from the stock’s current price.

Other equities research analysts have also issued reports about the company. Wall Street Zen raised Southwest Airlines from a “hold” rating to a “buy” rating in a research note on Sunday, July 5th. HSBC raised Southwest Airlines from a “reduce” rating to a “hold” rating and boosted their target price for the stock from $24.40 to $36.10 in a research report on Friday, April 24th. Bank of America upped their target price on Southwest Airlines from $40.00 to $45.00 and gave the company an “underperform” rating in a report on Wednesday, July 1st. Zacks Research upgraded Southwest Airlines from a “strong sell” rating to a “hold” rating in a research report on Thursday, June 25th. Finally, The Goldman Sachs Group lifted their price target on Southwest Airlines from $30.00 to $35.00 and gave the stock a “sell” rating in a research note on Thursday, July 2nd. 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’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $49.55.

Southwest Airlines Stock Up 1.1%

LUV stock opened at $45.19 on Friday. Southwest Airlines has a 12 month low of $28.98 and a 12 month high of $55.11. The firm has a market cap of $22.09 billion, a PE ratio of 27.72, a P/E/G ratio of 0.37 and a beta of 1.12. The firm has a 50 day simple moving average of $46.01 and a 200 day simple moving average of $44.29. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.41.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.42. The firm had revenue of $8.72 billion for the quarter, compared to analyst estimates of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The firm’s quarterly revenue was up 16.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.43 earnings per share. 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. Equities research analysts forecast that Southwest Airlines will post 3.59 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Southwest Airlines

Several hedge funds have recently bought and sold shares of the business. Norges Bank acquired a new stake in Southwest Airlines during the 4th quarter worth about $172,038,000. Massachusetts Financial Services Co. MA acquired a new position in shares of Southwest Airlines in the 4th quarter valued at about $143,450,000. Franklin Resources Inc. increased its holdings in shares of Southwest Airlines by 7.0% in the 4th quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock valued at $1,661,488,000 after purchasing an additional 2,626,853 shares during the period. Mizuho Markets Americas LLC purchased a new stake in shares of Southwest Airlines in the fourth quarter worth approximately $55,320,000. Finally, Nearwater Capital Markets Ltd lifted its position in shares of Southwest Airlines by 75.0% in the fourth quarter. Nearwater Capital Markets Ltd now owns 2,800,000 shares of the airline’s stock worth $115,724,000 after purchasing an additional 1,200,000 shares in the last quarter. 80.82% of the stock is owned by hedge funds and other institutional investors.

Key Stories 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.