Stock Price & Analysis

Based on the provided data and recent market activity, here's a concise analysis for Southwest Airlines (LUV):

Technical Analysis The stock is showing bearish momentum with a current price of $30.13, down 2.81% in regular trading hours. The RSI at 40.07 indicates neutral to slightly oversold conditions, while the MACD at -0.56 suggests bearish momentum continues.

Recent Developments Southwest Airlines appeared in Super Bowl LIX commercials, though the advertising impact remains to be seen. More importantly, TD Cowen recently lowered their price target to $25 from $28, citing execution concerns.

Analyst Consensus Current analyst sentiment is bearish, with a consensus "Hold" rating. Among 21 analysts:

• 4 Strong Buy
• 1 Moderate Buy
• 9 Hold
• 1 Moderate Sell
• 6 Strong Sell

The mean price target is $32.41, suggesting a modest 7.6% upside from current levels.

Key Concerns

• Operational execution issues
• Above-normal unit cost inflation
• Weaker earnings quality compared to pre-pandemic levels
• Premium valuation relative to peers despite operational challenges

Sell Recommendation Given the technical weakness, recent analyst downgrades, and operational challenges, selling LUV stock at current levels appears prudent. The stock is likely to face continued pressure as it works through its operational issues and higher costs.

Based on the recent data and analyst reports, here's the price prediction for Southwest Airlines (LUV) stock in 2025:

Southwest Airlines stock is expected to reach $32.41 by end of 2025, representing a modest 7.6% upside from current price of $30.13. The prediction is supported by TD Cowen's conservative outlook with a $25 price target and Barclays' more optimistic $35 target, reflecting mixed sentiment among analysts.

The company's aggressive $2.25B stock buyback plan in 2025 (approximately 12% of market cap) and targeted cost savings of $500M should provide price support, though ongoing cost inflation and capacity constraints may limit upside potential.

The S1 support level for LUV Stock is $30.14 ,The R1 resistant level for LUV Stock is $32.54.

As of the end of day on 2025-02-11, the price of LUV Stock was $29.77.

The target price for LUV Stock according to analyst rating is 32.82, with the highest price target at 42.00 and the lowest at 25.00. Analysts have a Hold rating on LUV Stock overall.

The market cap of LUV is $17.6B.

Based on the provided data and recent analyst ratings, Southwest Airlines (LUV) appears overvalued at current levels. The stock's P/E ratio of 46.49 for Q4 2024 is significantly higher than historical averages, while EV/EBITDA of 8.31 suggests stretched valuations. Recent analyst downgrades from B of A Securities and Citigroup in January 2025 highlight concerns about weaker earnings quality and free cash flow conversion compared to pre-pandemic levels. The stock's current price of $30.13 represents a -2.81% decline in regular market trading, reflecting ongoing market skepticism about valuation levels. Multiple analysts have lowered price targets, with recent targets ranging from $29-34, suggesting limited upside potential from current levels.

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 offers ancillary services, such as EarlyBird Check-In, Upgraded Boarding, and transportation of pets and unaccompanied minors, in accordance with Southwest’s respective policies. EarlyBird Check-In provides customers with automatic check-in and an assigned boarding position before general boarding positions become available. It has over 817 Boeing 737 aircraft in its fleet and serves 121 destinations in 42 states, the District of Columbia, the Commonwealth of Puerto Rico, and ten near-international countries: Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.

Based on the available data and market analysis, here is the price prediction for Southwest Airlines (LUV) stock by 2030:

Southwest Airlines stock is projected to reach $42-45 by 2030, representing a potential upside of approximately 40-50% from current levels of $30.13. This forecast is supported by the company's $2.25B stock repurchase plan in 2025 (approximately 12% of market cap) and its strategic goal to achieve 15% after-tax return on invested capital (ROIC) by 2027. However, near-term headwinds include TD Cowen's recent price target reduction to $25, citing concerns about execution of operational initiatives.

The prediction factors in Southwest's current operational challenges while recognizing its strong market position and commitment to shareholder returns through aggressive stock buybacks. The airline's focus on cost savings initiatives targeting $500M and improved operational efficiency should help drive long-term value creation.

LUV has a total of 74806 employees.