The Analyst Verdict: Southwest Airlines In The Eyes Of 8 Experts

Ratings for Southwest Airlines LUV were provided by 8 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Southwest Airlines, revealing an average target of $27.41, a high estimate of $35.00, and a low estimate of $19.00. Observing a downward trend, the current average is 2.52% lower than the prior average price target of $28.12.

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of Southwest Airlines by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Southwest Airlines. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Southwest Airlines compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Southwest Airlines's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Southwest Airlines analyst ratings.

Get to Know Southwest Airlines Better

Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates over 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated in a single, open-seating cabin configuration in a point-to-point network. In 2025, Southwest will modify its cabins to offer some seats with extra legroom and will update its ticketing process to offer assigned seats.

Southwest Airlines's Economic Impact: An Analysis

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Southwest Airlines's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 4.5%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Southwest Airlines's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 5.06%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Southwest Airlines's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.6%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Southwest Airlines's ROA stands out, surpassing industry averages. With an impressive ROA of 1.04%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Southwest Airlines's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.87.

The Significance of Analyst Ratings Explained

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.