In the last three months, 10 analysts have published ratings on Southwest Airlines LUV, offering a diverse range of perspectives from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 1 | 8 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 5 | 1 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 2 | 0 | 0 |
Analysts have set 12-month price targets for Southwest Airlines, revealing an average target of $28.77, a high estimate of $35.00, and a low estimate of $24.00. Observing a 15.91% increase, the current average has risen from the previous average price target of $24.82.
Deciphering Analyst Ratings: An In-Depth Analysis
The standing of Southwest Airlines among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jamie Baker | JP Morgan | Raises | Neutral | $26.00 | $20.00 |
| Brandon Oglenski | Barclays | Raises | Equal-Weight | $32.00 | $27.00 |
| Christopher Stathoulopoulos | Susquehanna | Raises | Neutral | $30.00 | $25.00 |
| Sheila Kahyaoglu | Jefferies | Raises | Hold | $32.00 | $24.00 |
| Stephen Trent | Citigroup | Raises | Neutral | $31.50 | $28.25 |
| Sheila Kahyaoglu | Jefferies | Raises | Underperform | $24.00 | $20.00 |
| Helane Becker | TD Cowen | Raises | Hold | $25.00 | $19.00 |
| Duane Pfennigwerth | Evercore ISI Group | Raises | Outperform | $35.00 | $30.00 |
| David Vernon | Bernstein | Lowers | Market Perform | $24.00 | $26.00 |
| Stephen Trent | Citigroup | Lowers | Neutral | $28.25 | $29.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Southwest Airlines. This insight gives a snapshot of analysts' perspectives on 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 explore the dynamics of price targets, providing estimates for the future value of Southwest Airlines's stock. This examination reveals shifts in analysts' expectations over time.
Capture valuable insights into Southwest Airlines's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on Southwest Airlines analyst ratings.
About Southwest Airlines
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.
Understanding the Numbers: Southwest Airlines's Finances
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Southwest Airlines displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 4.5%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 5.06%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Southwest Airlines's ROE excels beyond industry benchmarks, reaching 3.6%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.04%, the company showcases effective utilization of assets.
Debt Management: With a below-average debt-to-equity ratio of 0.87, Southwest Airlines adopts a prudent financial strategy, indicating a balanced approach to debt management.
Understanding the Relevance of Analyst Ratings
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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