Southwest Airlines (NYSE:LUV) Given New $60.00 Price Target at BMO Capital Markets

Southwest Airlines (NYSE:LUV) had its target price boosted by stock analysts at BMO Capital Markets from $58.50 to $60.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has an “outperform” rating on the airline’s stock. BMO Capital Markets’ price objective suggests a potential upside of 32.01% from the stock’s previous close.

A number of other analysts have also recently commented on the company. Argus reduced their price target on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating for the company in a research report on Friday, April 24th. Morgan Stanley raised their target price on shares of Southwest Airlines from $60.00 to $65.00 and gave the stock an “overweight” rating in a research note on Monday, July 6th. HSBC raised shares of Southwest Airlines from a “reduce” rating to a “hold” rating and increased their price objective for the stock from $24.40 to $36.10 in a research note on Friday, April 24th. Wells Fargo & Company upped their target price on shares of Southwest Airlines from $44.00 to $50.00 and gave the stock an “equal weight” rating in a report on Tuesday, June 30th. Finally, BNP Paribas Exane boosted their price objective on Southwest Airlines from $24.00 to $33.00 and gave the company an “underperform” rating in a research report on Tuesday, April 21st. Nine research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $49.55.

Southwest Airlines Stock Performance

Shares of NYSE LUV traded up $0.74 during midday trading on Friday, hitting $45.45. 3,220,485 shares of the stock traded hands, compared to its average volume of 8,244,103. The firm has a market capitalization of $22.21 billion, a P/E ratio of 27.89, a PEG ratio of 0.45 and a beta of 1.12. Southwest Airlines has a one year low of $28.98 and a one year high of $55.11. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48. The firm has a 50-day moving average of $45.88 and a two-hundred day moving average of $44.29.

Southwest Airlines (NYSE:LUV) last announced its 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. Southwest Airlines had a return on equity of 13.93% and a net margin of 2.78%.The business had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $8.58 billion. During the same period last year, the firm posted $0.43 earnings per share. The business’s revenue for the quarter was up 16.4% on a year-over-year basis. 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, equities analysts forecast that Southwest Airlines will post 3.23 EPS for the current fiscal year.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds have recently bought and sold shares of the business. Franklin Resources Inc. lifted its stake in shares of Southwest Airlines by 7.0% during the 4th quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock worth $1,661,488,000 after acquiring an additional 2,626,853 shares during the last quarter. Invesco Ltd. lifted its holdings in Southwest Airlines by 9.2% during the 3rd quarter. Invesco Ltd. now owns 6,837,197 shares of the airline’s stock valued at $218,175,000 after buying an additional 577,326 shares in the last quarter. Morgan Stanley boosted its position in Southwest Airlines by 4.1% in the 4th quarter. Morgan Stanley now owns 6,228,475 shares of the airline’s stock valued at $257,423,000 after buying an additional 244,891 shares during the period. Dimensional Fund Advisors LP grew its stake in Southwest Airlines by 2.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,763,154 shares of the airline’s stock worth $216,472,000 after acquiring an additional 117,833 shares in the last quarter. Finally, Norges Bank purchased a new position in shares of Southwest Airlines during the fourth quarter worth approximately $172,038,000. Hedge funds and other institutional investors 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: Southwest beat Q2 expectations, reporting adjusted EPS of $0.94 versus $0.52 expected and revenue of $8.72 billion, with record quarterly revenues and strong margin expansion. Southwest Airlines Co (LUV) Q2 2026 Earnings Call Highlights: Record Revenues and Strong …
• Positive Sentiment: Analyst sentiment improved in places, with Zacks upgrading LUV to Buy and Barclays keeping its Buy rating, which supports the longer-term outlook. Barclays Keeps Their Buy Rating on Southwest Airlines (LUV)
• Neutral Sentiment: Southwest used a Jones Act waiver to charter fuel by ship from Texas to California, highlighting active supply-chain management as jet fuel markets remain volatile. Southwest Airlines put Texas jet fuel on a boat to LA for the first time amid supply worries
• Neutral Sentiment: Citigroup lowered its price target on Southwest to $50 from $55 and kept a Neutral rating, signaling caution but still implying some upside from recent levels.
• Negative Sentiment: Guidance disappointed: Southwest’s Q3 EPS outlook of $0.50 to $0.75 came in below Wall Street expectations, and the company also cut its full-year forecast to $3.25 to $4.25 as fuel expenses rose sharply. Fuel swings turn US airline earnings forecasts into moving targets
• Negative Sentiment: Higher jet fuel prices are a broad industry headwind, and Southwest specifically said fuel costs increased by about $889 million, pressuring profit despite strong demand. Southwest Airlines profit jumps 9% as passengers pick up fuel tab, but third-quarter forecast falls short

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.