JP Morgan Cuts Southwest Airlines (LUV) Price Target to $58

JP Morgan reiterated its Overweight rating on Southwest Airlines Co. (NYSE: LUV) on October 23, 2026, while adjusting its price target down to $58.00 from $59.00. The updated research note offers a fresh look at the carrier as shares continue to trade well below Wall Street expectations.

LUV Southwest Airlines Co.

$41.25 ▲ +1.23% year to date

1M 3M YTD

Daily close · Oct 23, 2026

JP Morgan's Call on Southwest Airlines

On October 23, 2026, JP Morgan kept its Overweight rating on the airline, trimming its target price by one dollar from $59.00 to $58.00. The adjustment leaves a wide gap between the firm's target and where the stock currently trades.

Other Institutional Activity in Southwest Airlines

Primecap Management Company grew its holdings by 1,727,478 shares, ending with 48,797,725 shares worth about $2,014,614,069.0. Franklin Resources, Inc. grew its holdings by 2,192,641 shares, ending with 46,578,090 shares worth about $1,922,976,438.0. Elliott Investment Management L.P. reduced its holdings by 6,039,066 shares, ending with 24,308,000 shares worth about $1,003,555,776.0. Ameriprise Financial, Inc. grew its holdings by 792,775 shares, ending with 10,777,353 shares worth about $444,943,016.0.

Southwest Airlines Co. Stock Up 3.6%

Southwest shares recently traded around $41.33, sitting roughly equal to the closing price of $41.28 on October 23, 2026. The stock trades above its 50-day moving average of $40.72 but remains below its 200-day moving average of $43.46. Shares have changed hands between a 52-week low of $29.26 and a 52-week high of $55.11.

Recent Earnings

Southwest reported trailing twelve month revenue of $31,545,993,600.0 and earnings of $2.16 per share. The company generated a net profit margin of 3.3% and a return on equity of 13.9%. The company's next earnings report is scheduled for January 27, 2027.

Dividend

The company pays an annual dividend rate of $0.72 per share, yielding 1.71%. The payout ratio stands at 45.0%.

Insider Buying and Selling at Southwest Airlines Co.

Lisa M Atherton sold 118.0 shares of Southwest at a price of $37.95 on April 7, 2026, for a total value of $4,478.0.

Analysts Set New Price Targets

BMO Capital maintained its Outperform rating on September 28, 2026, lowering its target from $60.00 to $50.00. TD Cowen maintained a Buy rating on October 2, 2026, moving its target from $48.00 to $47.00. Susquehanna maintained a Neutral rating on October 7, 2026, lowering its target from $50.00 to $45.00. UBS maintained a Buy rating on October 16, 2026, lowering its target from $53.00 to $52.00. Across the broader analyst community, the stock carries a consensus buy recommendation from 23 analysts with a mean price target of $49.18.

About Southwest Airlines

Headquartered in Dallas, Texas, Southwest Airlines operates scheduled passenger flights across the United States and internationally. The carrier connects travelers through its extensive network while offering loyalty perks via its Rapid Rewards program and digital booking tools.

Bottom Line

JP Morgan's slight target reduction leaves the firm among the more optimistic voices on the street, given the large spread between the $58.00 target and the current price of $41.33. Investors will look toward the next earnings release on January 27, 2027, for further insight into traffic demand and cost controls.