LUV Price Prediction Next Week
Technical Analysis Southwest Airlines (LUV) shows a clear downward trend based on recent price action. The stock has declined from $33.94 to $29.81 over the past week, breaking below key support levels.
News Impact
- Major negative catalyst: First company-wide layoffs in 54 years, cutting 1,750 jobs (15% of corporate workforce)
- Facing pressure from activist investor Elliott Investment Management
- Challenging regulatory environment with new wheelchair passenger protection rules
- Operating margins declined to 2% in 2024, significantly below target of 10% by 2027
Price Forecast for Next Week Based on technical indicators and negative news sentiment, LUV is likely to continue its downward trajectory:
Target Prices:
- Support level: $28.50
- Resistance level: $31.35 (recent high)
- Expected trading range: $28.50 - $30.50
Recommendation: SELL Rationale:
- Breaking below support levels with increasing volume
- Significant organizational restructuring creating uncertainty
- Activist investor pressure may lead to more aggressive cost-cutting
- Deteriorating company culture could impact operational performance
- Technical indicators suggest continued bearish momentum
Price Target: $28.50 with potential to test lower levels if market sentiment remains negative.
LUV Similar Chart Price Prediction
The price of LUV is predicted to go up 4.41%, based on the high correlation periods with TRT. The similarity of these two price pattern on the periods is 97.16%.
LUV
TRT
Up: 4.41%Similarity: 97.16%
LUV Revenue Forecast
LUV EPS Forecast
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LUV VS S&P500
Southwest operates a leisure-focused low-cost carrier, which is well-positioned for a leisure-led post-pandemic recovery in aviation.
Southwest's lean operating model and discipline leave it with the cleanest airline balance sheet in North America, lowering its risk profile for equity investors.
Southwest's (albeit belated) investments in yield management and operational technology should allow it to attract new customers through bulk ticketing agencies and mitigate future scheduling disruptions from weather.
LUV Analyst's Forecast
Andrew Didora
B of A Securities
Hold → Sell
2025-01-17
Price Target
$33 → $31
Downside
-3.43%
BofA analyst Andrew Didora downgraded Southwest to Underperform from Neutral with a $31 price target.
Stephen Trent
Citigroup
Hold → Strong Sell
2025-01-16
Price Target
$32 → $30
Downside
-8.27%
Thomas Wadewitz
UBS
Strong Sell
2025-01-07
Price Target
$27 → $29
Downside
-11.8%
