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Analyst Expectations For Southwest Airlines's Future

Author: Benzinga Insights | May 13, 2024 12:00pm

Throughout the last three months, 16 analysts have evaluated Southwest Airlines (NYSE:LUV), offering a diverse set of opinions from bullish to bearish.

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

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 2 10 1 0
Last 30D 0 0 1 0 0
1M Ago 0 1 4 1 0
2M Ago 1 1 2 0 0
3M Ago 2 0 3 0 0

In the assessment of 12-month price targets, analysts unveil insights for Southwest Airlines, presenting an average target of $29.99, a high estimate of $42.00, and a low estimate of $20.00. Surpassing the previous average price target of $29.15, the current average has increased by 2.88%.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

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
Achal Kumar HSBC Announces Hold $27.80 -
David Vernon Bernstein Lowers Market Perform $26.00 $27.00
Christopher Stathoulopoulos Susquehanna Lowers Neutral $25.00 $27.00
Sheila Kahyaoglu Jefferies Lowers Underperform $20.00 $28.00
Helane Becker TD Cowen Lowers Hold $25.00 $26.00
Savanthi Syth Raymond James Lowers Outperform $30.00 $33.00
Brandon Oglenski Barclays Lowers Equal-Weight $26.00 $30.00
Christopher Stathoulopoulos Susquehanna Lowers Neutral $27.00 $30.00
Ravi Shanker Morgan Stanley Lowers Overweight $38.00 $40.00
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

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Southwest Airlines. This offers insight into analysts' perspectives on 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 set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

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.

About Southwest Airlines

Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates over 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.

Breaking Down Southwest Airlines's Financial Performance

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Southwest Airlines's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 10.92%. This signifies 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 net margin is impressive, surpassing industry averages. With a net margin of -3.65%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Southwest Airlines's ROE excels beyond industry benchmarks, reaching -2.23%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Southwest Airlines's ROA stands out, surpassing industry averages. With an impressive ROA of -0.64%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Southwest Airlines's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.9.

How Are Analyst Ratings Determined?

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 will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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

Posted In: LUV