In the preceding three months, 7 analysts have released ratings for Southwest Airlines (NYSE: LUV), presenting a wide array of perspectives from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 6 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 1 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 4 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $34.57, a high estimate of $40.00, and a low estimate of $30.00. Witnessing a positive shift, the current average has risen by 9.99% from the previous average price target of $31.43.
Interpreting Analyst Ratings: A Closer Look
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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Duane Pfennigwerth | Evercore ISI Group | Raises | In-Line | $35.00 | $34.00 |
| Jamie Baker | JP Morgan | Raises | Underweight | $35.00 | $28.00 |
| Christopher Stathoulopoulos | Susquehanna | Raises | Neutral | $30.00 | $25.00 |
| Duane Pfennigwerth | Evercore ISI Group | Lowers | In-Line | $34.00 | $40.00 |
| Duane Pfennigwerth | Evercore ISI Group | Maintains | In-Line | $40.00 | $40.00 |
| Brandon Oglenski | Barclays | Raises | Equal-Weight | $34.00 | $26.00 |
| Thomas Wadewitz | UBS | Raises | Neutral | $34.00 | $27.00 |
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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Southwest Airlines compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of Southwest Airlines's stock. This analysis reveals shifts in analysts' expectations over time.
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.
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 rows 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 and appear for the first time in travel aggregators' search results.
Breaking Down Southwest Airlines's Financial Performance
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Negative Revenue Trend: Examining Southwest Airlines's financials over 3M reveals challenges. As of 30 June, 2025, the company experienced a decline of approximately -1.5% in revenue growth, reflecting a decrease in 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 net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.94% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Southwest Airlines's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.45% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Southwest Airlines's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.69% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.67.
What Are 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.
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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