Southwest Airlines (NYSE:LUV) Price Target Lowered to $46.00 at TD Cowen

Southwest Airlines (NYSE:LUV) had its target price dropped by research analysts at TD Cowen from $56.00 to $46.00 in a research note issued to investors on Thursday,MarketScreener reports. The firm presently has a “buy” rating on the airline’s stock. TD Cowen’s target price would suggest a potential upside of 27.78% from the company’s current price.

Several other equities analysts have also recently issued reports on LUV. The Goldman Sachs Group dropped their price target on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating on the stock in a research report on Wednesday. Barclays raised Southwest Airlines from an “equal weight” rating to an “overweight” rating and increased their price objective for the stock from $34.00 to $56.00 in a research report on Tuesday, December 16th. Morgan Stanley boosted their target price on Southwest Airlines from $50.00 to $55.00 and gave the company an “overweight” rating in a report on Friday, January 30th. Wells Fargo & Company decreased their price target on Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating for the company in a report on Monday, March 16th. Finally, Wall Street Zen lowered shares of Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, March 14th. Eight analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $43.72.

Southwest Airlines Stock Performance

Shares of Southwest Airlines stock opened at $36.00 on Thursday. The firm’s fifty day simple moving average is $45.70 and its 200-day simple moving average is $39.36. Southwest Airlines has a 12 month low of $23.82 and a 12 month high of $55.11. The stock has a market capitalization of $17.68 billion, a price-to-earnings ratio of 42.80, a PEG ratio of 0.27 and a beta of 1.10. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. The firm had revenue of $7.44 billion during the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. Southwest Airlines’s quarterly revenue was up 7.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.56 EPS. 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 forecast that Southwest Airlines will post 1.55 earnings per share for the current year.

Institutional Investors Weigh In On Southwest Airlines

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Cibc World Market Inc. boosted its position in Southwest Airlines by 12.6% during the third quarter. Cibc World Market Inc. now owns 1,916,003 shares of the airline’s stock worth $61,140,000 after purchasing an additional 214,092 shares in the last quarter. Hussman Strategic Advisors Inc. purchased a new position in shares of Southwest Airlines in the third quarter valued at $2,010,000. Gradient Investments LLC raised its stake in shares of Southwest Airlines by 5.4% during the 3rd quarter. Gradient Investments LLC now owns 578,088 shares of the airline’s stock worth $18,447,000 after buying an additional 29,665 shares during the last quarter. SG Americas Securities LLC boosted its position in shares of Southwest Airlines by 2,468.4% in the 4th quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock worth $155,085,000 after buying an additional 3,606,255 shares in the last quarter. Finally, Nordea Investment Management AB purchased a new stake in shares of Southwest Airlines in the 4th quarter worth about $31,968,000. Institutional investors and hedge funds 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: Jefferies raised its price target slightly to $42 (from $41) and kept a Hold rating — a modest supportive datapoint amid broader cuts. Read More.
• Positive Sentiment: Bank of America research flagged that, while higher fuel costs are pressuring airlines, strong travel demand and the ability to raise fares could offset some margin pressure — a demand-side cushion for LUV. Read More.
• Neutral Sentiment: UBS trimmed its price target to $56 from $59 but reiterated a Buy — a modest downgrade in upside but still positive relative to many other firms’ notes. Read More.
• Negative Sentiment: BMO cut its price target to $45 from $57.50 (while keeping an Outperform rating) — a notable reduction in implied upside that weighs on sentiment. Read More.
• Negative Sentiment: Raymond James trimmed its target to $45 from $55 (maintaining Outperform) — another materially lower PT from a previously bullish level. Read More.
• Negative Sentiment: Goldman Sachs cut its target to $30 (from $32) and kept a Sell rating — a strong negative signal from a major house that increases downside risk. Read More.
• Negative Sentiment: Bank of America lowered its PT to $40 (from $42) and maintained an Underperform rating — another downgrade adding pressure. Read More.
• Negative Sentiment: Broader industry concerns — including the Iran conflict raising costs and expectations of higher overheads and lower margins for carriers — are pressuring investor appetite for airline stocks. Read More.

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.