Seaport Research Partners Forecasts Strong Price Appreciation for Southwest Airlines (NYSE:LUV) Stock

Southwest Airlines (NYSE:LUV) had its price target increased by stock analysts at Seaport Research Partners from $57.00 to $58.00 in a research report issued on Thursday,MarketScreener reports. Seaport Research Partners’ price objective would suggest a potential upside of 18.75% from the company’s current price.

A number of other equities analysts also recently issued reports on the company. Deutsche Bank Aktiengesellschaft increased their price target on Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, December 12th. Evercore ISI boosted their price target on Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a research note on Thursday. UBS Group boosted their price target on Southwest Airlines from $43.00 to $45.00 and gave the company a “neutral” rating in a research note on Tuesday, January 6th. Morgan Stanley raised their target price on shares of Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a report on Friday. Finally, Wells Fargo & Company assumed coverage on shares of Southwest Airlines in a report on Thursday, December 18th. They set an “equal weight” rating and a $45.00 target price for the company. Seven investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $44.34.

Southwest Airlines Trading Up 0.7%

Shares of LUV stock traded up $0.34 during trading hours on Thursday, reaching $48.84. 1,080,334 shares of the stock were exchanged, compared to its average volume of 9,528,477. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.52. Southwest Airlines has a 12-month low of $23.82 and a 12-month high of $49.85. The firm has a market capitalization of $25.26 billion, a price-to-earnings ratio of 57.99, a price-to-earnings-growth ratio of 0.37 and a beta of 1.16. The company’s 50-day moving average price is $40.42 and its 200-day moving average price is $35.14.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.02. The business had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.51 billion. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.11%. The firm’s quarterly revenue was up 7.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.56 earnings per share. 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 year.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors have recently modified their holdings of the company. Wealthfront Advisers LLC increased its position in shares of Southwest Airlines by 19.1% during the fourth quarter. Wealthfront Advisers LLC now owns 32,317 shares of the airline’s stock worth $1,336,000 after purchasing an additional 5,181 shares in the last quarter. M&T Bank Corp increased its stake in shares of Southwest Airlines by 9.4% during the fourth quarter. M&T Bank Corp now owns 92,569 shares of the airline’s stock worth $3,827,000 after acquiring an additional 7,927 shares during the period. Ashton Thomas Private Wealth LLC grew its holdings in Southwest Airlines by 3.0% during the fourth quarter. Ashton Thomas Private Wealth LLC now owns 19,513 shares of the airline’s stock worth $810,000 after acquiring an additional 572 shares during the period. D.A. Davidson & CO. lifted its stake in shares of Southwest Airlines by 6.9% in the fourth quarter. D.A. Davidson & CO. now owns 9,511 shares of the airline’s stock valued at $393,000 after purchasing an additional 610 shares during the period. Finally, Inscription Capital LLC purchased a new position in Southwest Airlines in the fourth quarter valued at about $218,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

More Southwest Airlines News

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

• Positive Sentiment: Management raised FY‑2026 adjusted EPS guidance to at least $4.00 and described the company’s business transformation (assigned seating, bag/seat fees) as driving materially higher revenue and profits — the core catalyst for today’s rally. Press Release
• Positive Sentiment: Major analyst upgrades/price‑target raises contributed to the upside: Morgan Stanley moved to an “overweight” and lifted its target to $55, signaling confidence that the company can regain pre‑pandemic economics. Benzinga
• Positive Sentiment: BMO upgraded LUV from “market perform” to “outperform” and raised its target to $57.50, another bullish vote that likely supports buying interest. Benzinga TickerReport
• Positive Sentiment: Q4 results showed an EPS beat and improving operating metrics (EPS topped estimates; revenue growth and operating profit gains helped sentiment). Zacks: Q4 Results
• Neutral Sentiment: Other analysts raised targets modestly or kept in‑line ratings (Evercore ISI to $45 in‑line), reflecting mixed views on valuation despite the stronger outlook. AmericanBankingNews
• Neutral Sentiment: Street research roundups and transcripts are circulating (conference call/transcript coverage), helping investors re‑price LUV based on management commentary. 24/7 Wall St. roundup
• Negative Sentiment: Not all analysts are unequivocally bullish — Bank of America raised its target to $42 but kept an “underperform” stance, implying meaningful downside relative to current levels and signaling valuation/execution concerns. Benzinga
• Negative Sentiment: Management’s Q1 guidance (approx. $0.45) came in below consensus, indicating potential short‑term pressure even as full‑year guidance is strong — keep an eye on near‑term revenue/unit‑revenue trends. Press Release
• Negative Sentiment: Unusual options activity (spike in put purchases) suggests some investors are hedging or expressing near‑term caution, which can amplify volatility.

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.