7 analysts have shared their evaluations of Southwest Airlines (NYSE:LUV) during the recent three months, expressing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 5 | 2 | 0 |
| Last 30D | 0 | 0 | 1 | 1 | 0 |
| 1M Ago | 0 | 0 | 3 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 1 | 0 |
| 3M Ago | 0 | 0 | 1 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $33.57, along with a high estimate of $36.00 and a low estimate of $30.00. This upward trend is evident, with the current average reflecting a 8.29% increase from the previous average price target of $31.00.
Decoding Analyst Ratings: A Detailed Look
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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Thomas Wadewitz | UBS | Lowers | Neutral | $33.00 | $35.00 |
| Jamie Baker | JP Morgan | Raises | Underweight | $36.00 | $35.00 |
| Christopher Stathoulopoulos | Susquehanna | Raises | Neutral | $35.00 | $30.00 |
| Sheila Kahyaoglu | Jefferies | Raises | Hold | $31.00 | $30.00 |
| 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 |
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: 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.
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.
Unveiling the Story Behind 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.
Understanding the Numbers: Southwest Airlines's Finances
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Revenue Challenges: Southwest Airlines's revenue growth over 3M faced difficulties. As of 30 September, 2025, the company experienced a decline of approximately -4.07%. This indicates a decrease in 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 net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.78% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Southwest Airlines's ROE excels beyond industry benchmarks, reaching 0.68%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Southwest Airlines's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.19%, the company showcases efficient use of assets and strong financial health.
Debt Management: Southwest Airlines's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.68.
The Significance of Analyst Ratings Explained
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 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.
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