Breaking Down Southwest Airlines: 5 Analysts Share Their Views

Analysts' ratings for Southwest Airlines LUV over the last quarter vary from bullish to bearish, as provided by 5 analysts.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $31.2, a high estimate of $40.00, and a low estimate of $23.00. This upward trend is evident, with the current average reflecting a 0.65% increase from the previous average price target of $31.00.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Southwest Airlines among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Southwest Airlines. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide 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 gauge the dynamics of price targets, providing estimates for the future value of Southwest Airlines's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Southwest Airlines's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using 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 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 and merchandising to offer assigned seats and more fare categories including a basic economy class that will more directly compete with other airlines' offerings.

Financial Milestones: Southwest Airlines's Journey

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Southwest Airlines's revenue growth over a period of 3M has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 1.56%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower 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 -2.32%, 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 -1.51%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Southwest Airlines's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -0.45%, the company showcases efficient use of assets and strong financial health.

Debt Management: Southwest Airlines's debt-to-equity ratio is below the industry average at 0.85, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

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.