Breaking Down Southwest Airlines: 13 Analysts Share Their Views

13 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 encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	0	2	9	2	0
Last 30D	0	0	1	0	0
1M Ago	0	2	5	1	0
2M Ago	0	0	2	0	0
3M Ago	0	0	1	1	0

Analysts have set 12-month price targets for Southwest Airlines, revealing an average target of $41.85, a high estimate of $56.00, and a low estimate of $33.00. This upward trend is evident, with the current average reflecting a 20.95% increase from the previous average price target of $34.60.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Southwest Airlines among financial experts becomes clear 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
John Godyn	Citigroup	Raises	Neutral	$44.00	$38.00
Atul Maheswari	UBS	Raises	Neutral	$45.00	$43.00
Andrew Didora	B of A Securities	Raises	Underperform	$37.00	$28.00
Christian Wetherbee	Wells Fargo	Announces	Equal-Weight	$45.00	-
Brandon Oglenski	Barclays	Raises	Overweight	$56.00	$34.00
Tom Fitzgerald	TD Cowen	Raises	Hold	$42.00	$31.00
Atul Maheswari	UBS	Raises	Neutral	$43.00	$33.00
Michael Goldie	BMO Capital	Announces	Market Perform	$43.00	-
Ravi Shanker	Morgan Stanley	Raises	Overweight	$48.00	$38.00
John Godyn	Citigroup	Announces	Neutral	$38.00	-
David Vernon	Bernstein	Raises	Market Perform	$34.00	$31.00
Thomas Wadewitz	UBS	Lowers	Neutral	$33.00	$35.00
Jamie Baker	JP Morgan	Raises	Underweight	$36.00	$35.00

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 predict movements in price targets, offering estimates for Southwest Airlines's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into Southwest Airlines's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic 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 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 early 2026, 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.

Financial Milestones: Southwest Airlines's Journey

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Southwest Airlines displayed positive results in 3M. As of 30 September, 2025, the company achieved a solid revenue growth rate of approximately 1.15%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

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 is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.68%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.19%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Southwest Airlines's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.68.

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.

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.