In a recent trading session, shares of Southwest Airlines Co (Symbol: LUV) surpassed the average analyst’s 12-month price target of $29.46, reaching $30.30 per share. This development raises questions about how analysts will respond: will they downgrade the stock or revise the target to a higher price? Additionally, their reactions often hinge on the company’s recent performance and market trends, fueling discussions about future stock valuations.
Within the Zacks coverage universe, analysts have provided 18 different targets for Southwest Airlines. While the average offers a general picture, individual predictions vary. One analyst estimates a price target as low as $19.00, while another sees potential as high as $40.00. The standard deviation in their estimates stands at $5.733, indicating a broad range of opinions.
The average target price serves as a “wisdom of crowds” metric, compiling insights from various analysts rather than relying on a single viewpoint. With LUV trading above its average target of $29.46, investors are prompted to evaluate whether this level is merely a stepping stone toward even greater targets or if the stock’s valuation has peaked, suggesting it may be time to consider selling. Below is a table summarizing current analyst ratings for Southwest Airlines Co:
| Recent LUV Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 4 | 4 | 3 | 3 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 9 | 8 | 9 | 9 |
| Sell ratings: | 0 | 1 | 1 | 1 |
| Strong sell ratings: | 3 | 3 | 2 | 3 |
| Average rating: | 2.82 | 2.88 | 2.88 | 3.0 |
The average rating, as shown in the previous table, ranges from 1 (Strong Buy) to 5 (Strong Sell). Data provided by Zacks Investment Research via Quandl.com informs this analysis.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
