Across the recent three months, 11 analysts have shared their insights on Southwest Airlines LUV, expressing a variety of opinions spanning from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 1 | 6 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 2 | 0 | 2 | 0 | 0 |
| 2M Ago | 1 | 0 | 1 | 0 | 0 |
| 3M Ago | 0 | 1 | 2 | 1 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Southwest Airlines, presenting an average target of $32.36, a high estimate of $42.00, and a low estimate of $24.00. This current average reflects an increase of 15.57% from the previous average price target of $28.00.
Decoding Analyst Ratings: A Detailed Look
A clear picture of Southwest Airlines's perception among financial experts is painted 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 |
|---|---|---|---|---|---|
| Brandon Oglenski | Barclays | Lowers | Equal-Weight | $30.00 | $32.00 |
| Atul Maheswari | UBS | Announces | Buy | $36.00 | - |
| David Vernon | Bernstein | Lowers | Market Perform | $27.00 | $32.00 |
| Sheila Kahyaoglu | Jefferies | Raises | Hold | $28.00 | $20.00 |
| John Staszak | Argus Research | Announces | Buy | $40.00 | - |
| Michael Linenberg | Deutsche Bank | Raises | Buy | $42.00 | $28.00 |
| David Vernon | Bernstein | Raises | Market Perform | $32.00 | $26.00 |
| Brandon Oglenski | Barclays | Raises | Equal-Weight | $32.00 | $27.00 |
| Jamie Baker | JP Morgan | Raises | Neutral | $29.00 | $24.00 |
| Savanthi Syth | Raymond James | Raises | Outperform | $36.00 | $34.00 |
| David Vernon | Bernstein | Lowers | Underperform | $24.00 | $29.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Southwest Airlines. This information provides 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 provide insights into price targets, offering estimates for the future value of Southwest Airlines's stock. This comparison reveals trends in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Southwest Airlines's market standing. Stay informed and make well-considered decisions with 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 over 700 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, using a point-to-point network. Southwest operates a low-cost carrier business model.
Southwest Airlines: A Financial Overview
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Over the 3 months period, Southwest Airlines showcased positive performance, achieving a revenue growth rate of 10.55% as of 31 December, 2023. This reflects 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 -3.41%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of -2.16%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Southwest Airlines's ROA stands out, surpassing industry averages. With an impressive ROA of -0.63%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Southwest Airlines's debt-to-equity ratio is below the industry average at 0.87, reflecting a lower dependency on debt financing and a more conservative financial approach.
Analyst Ratings: What Are They?
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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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