Southwest Airlines EPS Seen Tripling to $2.96, Price Target Raised to $60
LUV•Analysts raised Southwest Airlines' price target to $60 from $55 while forecasting EPS to triple to $2.96 this year and exceed $4.50 by fiscal 2028. The valuation, based on a low-teens P/E on normalized EPS, reflects strong passenger demand, stable fares and reduced fuel costs.
1. Analyst Upgrades and Price Targets
Raymond James increased its price target for Southwest Airlines to $60 from $55 and maintained a Strong Buy stance, while TD Cowen and Wells Fargo also raised their targets in recent sessions.
2. Earnings Forecasts and Valuation Metrics
EPS for this year is projected to triple to $2.96, with normalized earnings climbing above $4.50 by fiscal 2028; applying a low-teens P/E multiple to the longer-term EPS supports the $60 valuation.
3. Demand Trends and Fare Stability
Strong passenger demand and persistent fare increases through the spring and summer are expected to sustain revenue growth into the third quarter and beyond.
4. Fuel Costs and Profitability Outlook
Jet fuel prices remain under $70 per barrel, lowering operating expenses and enhancing profit margins across the carrier’s domestic network.
