Breaking Down Southwest Airlines: 9 Analysts Share Their Views

In the latest quarter, 9 analysts provided ratings for Southwest Airlines LUV, 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.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $32.28, a high estimate of $40.00, and a low estimate of $25.00. Marking an increase of 2.67%, the current average surpasses the previous average price target of $31.44.

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Southwest Airlines. The following summary outlines 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: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey 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.

To gain a panoramic view of Southwest Airlines's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Southwest Airlines analyst ratings.

Delving into Southwest Airlines's Background

Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 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 late 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: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Southwest Airlines's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 1.57%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in 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 3.84%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Southwest Airlines's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.56% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Southwest Airlines's ROA excels beyond industry benchmarks, reaching 0.78%. This signifies efficient management of assets and strong financial health.

Debt Management: Southwest Airlines's debt-to-equity ratio is below the industry average. With a ratio of 0.78, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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