Southwest stock price target raised to $42 from $41 at Freedom Capital Markets

Published 28/10/2025, 16:28
Southwest stock price target raised to $42 from $41 at Freedom Capital Markets

Investing.com - Freedom Capital Markets has raised its price target on Southwest Airlines (NYSE:LUV) to $42.00 from $41.00 while maintaining a Buy rating on the stock. The new target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $24 to $46, with 5 analysts recently revising their earnings expectations upward.

The research firm cited "modest improvement" at Southwest Airlines in its analysis of the company’s current performance.

Freedom Capital Markets noted that the airline’s strategic plan "is tracking well," according to its assessment of the company’s operations and financial outlook.

Despite the positive trajectory, the firm acknowledged that execution of Southwest’s strategic initiatives "remains uneven" at this stage.

The $1 increase in the price target reflects Freedom Capital Markets’ slightly more optimistic view of Southwest’s future prospects while maintaining its overall positive investment recommendation.

In other recent news, Southwest Airlines reported its third-quarter 2025 earnings, revealing an earnings per share of $0.11, which exceeded the anticipated loss of $0.04. However, the airline’s revenue fell short of expectations, coming in at $6.9 billion compared to the forecasted $6.92 billion. In a strategic financial move, Southwest Airlines announced the pricing of a $1.5 billion notes offering, with $750 million in 4.375% notes due in 2028 and another $750 million in 5.250% notes due in 2035. Additionally, the company has entered into an interline agreement with Hahnair, which will expand its ticketing access to 100,000 travel agencies across 190 international markets. This partnership aims to enhance Southwest’s global presence by allowing international bookings through local agencies. Meanwhile, TD Cowen has raised its price target for Southwest Airlines to $28 from $24, maintaining a Hold rating. The firm updated its estimates based on the airline’s recent earnings results and future guidance. These developments reflect ongoing efforts by Southwest to strengthen its financial position and expand its market reach.

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