A Glimpse Into The Expert Outlook On Southwest Airlines Through 13 Analysts

13 analysts have shared their evaluations of Southwest Airlines LUV during the recent three months, expressing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $31.0, a high estimate of $42.00, and a low estimate of $23.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 2.61%.

Exploring Analyst Ratings: An In-Depth Overview

In examining recent analyst actions, we gain insights into 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 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: 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.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Southwest Airlines's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Southwest Airlines analyst ratings.

All You Need to Know 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.

Southwest Airlines: Delving into Financials

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Over the 3M period, Southwest Airlines showcased positive performance, achieving a revenue growth rate of 1.56% as of 31 March, 2025. This reflects 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 ROA stands out, surpassing industry averages. With an impressive ROA of -0.45%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.85, Southwest Airlines adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: Simplified

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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