Current Performance of the Airline Sector: The US Global Jets ETF (JETS) is gaining attention as the airline sector shows strong performance, with major airlines like Southwest, Delta, and United reaching new highs, indicating a potential turnaround for investors.
Investment Strategy: The JETS ETF offers a way to invest in the airline sector without the risks associated with individual stocks, making it an attractive option for those looking to diversify their portfolios.
Market Analysis and Projections: A breakout above the $27 resistance level is seen as critical, with potential upside targets of $33 and possibly low $40s in the long term, supported by a favorable long-term chart setup.
Risk Management: Investors are advised to set stop-loss orders near the rising 50-day moving average to manage downside risk, as this level has historically provided support during upward trends.
Wall Street analysts forecast LUV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LUV is 44.21 USD with a low forecast of 34.00 USD and a high forecast of 60.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
Wall Street analysts forecast LUV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LUV is 44.21 USD with a low forecast of 34.00 USD and a high forecast of 60.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
9 Hold
1 Sell
Hold
Current: 42.850
Low
34.00
Averages
44.21
High
60.00
Current: 42.850
Low
34.00
Averages
44.21
High
60.00
Susquehanna
Christopher Stathoulopoulos
Neutral
maintain
$35 -> $45
2026-01-09
Reason
Susquehanna
Christopher Stathoulopoulos
Price Target
$35 -> $45
AI Analysis
2026-01-09
maintain
Neutral
Reason
Susquehanna analyst Christopher Stathoulopoulos raised the firm's price target on Southwest to $45 from $35 and keeps a Neutral rating on the shares as part of a Q4 preview. The firm sees a "constructive fundamental backdrop" for the airlines into fiscal 2026. Select carriers will benefit from brand loyalty and diverse revenue streams, the analyst tells investors in a research note.
JPMorgan
Underweight -> Overweight
upgrade
$60
2026-01-09
Reason
JPMorgan
Price Target
$60
2026-01-09
upgrade
Underweight -> Overweight
Reason
JPMorgan upgraded Southwest to Overweight from Underweight with a $60 price target.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for LUV
Unlock Now
JPMorgan
Jamie Baker
Underweight -> Overweight
upgrade
$36 -> $60
2026-01-09
Reason
JPMorgan
Jamie Baker
Price Target
$36 -> $60
2026-01-09
upgrade
Underweight -> Overweight
Reason
JPMorgan analyst Jamie Baker double upgraded Southwest to Overweight from Underweight with a price target of $60, up from $36. The firm says the potential for a $5 earnings per share outlook for 2026 from Southwest is "attractively probable." Such guidance would "handily dwarf" the $2.98 consensus estimate, the analyst tells investors in a research note. JPMorgan also placed Southwest on "Positive Catalyst Watch" into the upcoming earnings report and 2026 guidance on January 29.
Morgan Stanley
Overweight
maintain
$48 -> $50
2026-01-08
Reason
Morgan Stanley
Price Target
$48 -> $50
2026-01-08
maintain
Overweight
Reason
Morgan Stanley raised the firm's price target on Southwest to $50 from $48 and keeps an Overweight rating on the shares. Q4 is likely to be "another noisy quarter" to cap "a write-off year" for the airlines, but investors will be focused on underlying clues to 2026 hidden in Q4 numbers and this time "the tone may be different" as despite the noise, all the airlines have sounded very positive about underlying demand trends, the analyst tells investors in a preview for the group.
About LUV
Southwest Airlines Co. (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company's fare products include four categories: Wanna Get Away, Wanna Get Away Plus, Anytime, and Business Select to provide customers options when choosing a fare. It also offers ancillary services, such as EarlyBird Check-In, Upgraded Boarding, and transportation of pets and unaccompanied minors, in accordance with Southwest’s respective policies. Its Rapid Rewards loyalty program enables program members to earn points for every dollar spent on Southwest base fares, also including purchases paid with LUV Vouchers, gift cards, or flight credit, with no portion of the purchase price paid with Rapid Rewards points. It operates over 803 Boeing 737 aircraft in its fleet and serves 117 destinations in 42 states, the District of Columbia, the Commonwealth of Puerto Rico, and ten near-international countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
