Beyond The Numbers: 11 Analysts Discuss Southwest Airlines Stock
Throughout the last three months, 11 analysts have evaluated Southwest Airlines (NYSE:LUV), offering a diverse set of opinions from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 2 | 4 | 1 | 4 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 1 | 2 |
| 2M Ago | 0 | 2 | 2 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 2 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $33.32, with a high estimate of $42.00 and a low estimate of $27.00. Marking an increase of 2.33%, the current average surpasses the previous average price target of $32.56.
Deciphering Analyst Ratings: An In-Depth Analysis
A comprehensive examination of how financial experts perceive Southwest Airlines is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Christopher Stathoulopoulos | Susquehanna | Lowers | Neutral | $34.00 | $38.00 |
| Andrew Didora | B of A Securities | Lowers | Underperform | $31.00 | $33.00 |
| Stephen Trent | Citigroup | Lowers | Sell | $29.50 | $31.50 |
| Christopher Stathoulopoulos | Susquehanna | Raises | Neutral | $38.00 | $33.00 |
| Thomas Wadewitz | UBS | Raises | Sell | $29.00 | $27.00 |
| Savanthi Syth | Raymond James | Raises | Outperform | $40.00 | $36.00 |
| David Vernon | Bernstein | Raises | Market Perform | $33.00 | $30.00 |
| Ravi Shanker | Morgan Stanley | Announces | Overweight | $42.00 | - |
| Brandon Oglenski | Barclays | Raises | Equal-Weight | $35.00 | $32.00 |
| Thomas Wadewitz | UBS | Announces | Sell | $27.00 | - |
| Catherine O'Brien | Goldman Sachs | Announces | Sell | $28.00 | - |
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: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into 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.
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.
Discovering Southwest Airlines: A Closer Look
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 to offer assigned seats.
A Deep Dive into Southwest Airlines's Financials
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Southwest Airlines's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 0.89%. This indicates 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 net margin is impressive, surpassing industry averages. With a net margin of 3.77%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Southwest Airlines's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.51%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Southwest Airlines's ROA excels beyond industry benchmarks, reaching 0.76%. This signifies efficient management of assets and strong financial health.
Debt Management: Southwest Airlines's debt-to-equity ratio is below the industry average. With a ratio of 0.78, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
The Significance of Analyst Ratings Explained
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
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.