TD Cowen Has Lowered Expectations for Southwest Airlines (NYSE:LUV) Stock Price

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

A number of other analysts have also commented on LUV. Morgan Stanley increased their price objective on Southwest Airlines from $50.00 to $55.00 and gave the company an “overweight” rating in a research note on Friday, January 30th. Raymond James Financial reduced their target price on shares of Southwest Airlines from $55.00 to $45.00 and set an “outperform” rating on the stock in a report on Tuesday. Wall Street Zen cut shares of Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, March 14th. Susquehanna boosted their price objective on shares of Southwest Airlines from $45.00 to $55.00 and gave the company a “neutral” rating in a research report on Tuesday, February 3rd. Finally, Jefferies Financial Group upped their price objective on shares of Southwest Airlines from $41.00 to $42.00 and gave the company a “hold” rating in a research note on Tuesday. Eight research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $43.72.

Southwest Airlines Trading Down 5.8%

Shares of Southwest Airlines stock opened at $36.00 on Thursday. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $55.11. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45. The business has a 50 day moving average price of $45.70 and a 200 day moving average price of $39.36. The company has a market capitalization of $17.68 billion, a P/E ratio of 42.80, a P/E/G ratio of 0.27 and a beta of 1.10.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, beating 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 firm had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. During the same quarter in the prior year, the firm earned $0.56 EPS. Southwest Airlines’s quarterly revenue was up 7.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. Sell-side analysts anticipate that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Institutional Investors Weigh In On Southwest Airlines

A number of institutional investors have recently bought and sold shares of the stock. SHP Wealth Management acquired a new position in Southwest Airlines during the fourth quarter worth approximately $25,000. GHP Investment Advisors Inc. purchased a new stake in shares of Southwest Airlines during the 4th quarter valued at $26,000. Entrust Financial LLC acquired a new stake in shares of Southwest Airlines during the 4th quarter worth $26,000. Los Angeles Capital Management LLC purchased a new position in shares of Southwest Airlines in the 4th quarter worth $26,000. Finally, Optima Capital LLC purchased a new position in shares of Southwest Airlines in the 4th quarter worth $27,000. 80.82% of the stock is currently 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: 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.