Core Viewpoint - Southwest Airlines has been upgraded to Overweight from Neutral by JPMorgan, with a new price target set at $60, significantly higher than the previous target of $36, leading to a 4% increase in shares intraday following the rating change [1] Group 1: Earnings Guidance - There is a meaningful probability that Southwest could issue earnings guidance of $5 per share, which would exceed the current 2026 consensus estimate of $2.98 and all existing individual forecasts [2] - JPMorgan noted that the market may initially be skeptical of such guidance due to Southwest's uneven track record, which has influenced the airline's decision to adopt a more streamlined EPS-based guidance framework [2] Group 2: Stock Valuation - Acceptance of guidance below $5, along with unchanged valuation assumptions, could still push the stock above $50 in the near term, paving the way for a potential valuation of $60 [3] - JPMorgan's analysis led to a double upgrade of the stock to Overweight and the establishment of a new Street-high price target of $60 for December 2026 [3] Group 3: Positive Catalyst Watch - JPMorgan placed Southwest on Positive Catalyst Watch ahead of the upcoming earnings report and 2026 guidance update scheduled for January 29, indicating that the updated financial model supports the revised outlook [4]

Core Insights - Southwest Airlines (NYSE:LUV) is recognized for its low-cost fares and extensive domestic network, competing with major carriers like Delta and American Airlines [1] - Recent adjustments in ratings from financial analysts indicate a mixed outlook, with Susquehanna maintaining a Neutral rating and raising the price target from $35 to $45, while JPMorgan upgraded its rating, citing an "attractively profitable" outlook [2][5] Stock Performance - The current stock price of LUV is $44.18, reflecting an increase of approximately 2.92% with a change of $1.26, and it has fluctuated between a low of $43.87 and a high of $45.02 today [3] - Over the past year, LUV has experienced significant volatility, reaching a high of $45 and a low of $23.82 [5] Market Capitalization and Trading Activity - Southwest Airlines has a market capitalization of approximately $22.85 billion, indicating its size and influence in the airline industry [4] - The trading volume for the day is 4,628,003 shares on the NYSE, reflecting active investor interest aligned with recent upgrades and positive outlooks from analysts [4]

Core Viewpoint - Southwest Airlines shares increased by over 4% following a rare double upgrade from JP Morgan, indicating a growing confidence in the airline's stronger earnings outlook and its potential to reshape investor expectations [1] Group 1 - JP Morgan's double upgrade reflects an optimistic view on Southwest Airlines' earnings potential [1] - The upgrade is seen as a significant endorsement of the airline's financial health and future performance [1] - The market's positive reaction, with a share price increase of over 4%, suggests investor enthusiasm for the airline's prospects [1]

Core Viewpoint - Southwest Airlines Co (NYSE:LUV) has experienced a significant stock increase, reaching a three-year high after a double-upgrade from J.P. Morgan Securities, which raised its price target to $60 from $36, reflecting optimism about the company's earnings prospects for 2026 [1]. Stock Performance - LUV shares have risen 2.8% to $44.15, marking a sharp upswing since early December and breaking above the $43 resistance level [2]. - The stock is on track for its fifth consecutive gain, with a 7% increase since the start of 2026 and a 34% increase year over year [2]. Short Interest and Analyst Ratings - Short interest in LUV has decreased by 19.6% over the last two weeks, but still represents 5% of the stock's available float, indicating potential buying power [3]. - Among analysts, 18 out of 26 still hold a "hold" or worse rating on Southwest Airlines, with a 12-month consensus price target of $40.45, which is approximately 9% below current levels [3]. Options Market Sentiment - The options market shows a high put/call volume ratio, with a 10-day ratio of 2.50 and a 50-day ratio of 2.19, indicating a higher level of pessimism among options traders compared to the past year [4]. - The Schaeffer's Volatility Index (SVI) for LUV is at 36%, which is in the low 12th percentile of its annual range, suggesting that options traders are anticipating low volatility [5].

Core Viewpoint - U.S. airline stocks strengthened on Friday, with Southwest Airlines receiving a significant upgrade from Morgan Stanley, which raised its rating from "Underweight" to "Overweight" and increased the target price from $36 to $60 [1] Group 1: Stock Performance - Southwest Airlines (LUV.US) rose over 3.4% [1] - American Airlines (AAL.US) and Alaska Airlines (ALK.US) increased by more than 2% [1] - JetBlue Airways (JBLU.US), United Airlines (UAL.US), and Delta Air Lines (DAL.US) saw gains of over 1% [1] Group 2: Analyst Actions - Morgan Stanley upgraded Southwest Airlines' rating from "Underweight" to "Overweight" [1] - The target price for Southwest Airlines was raised from $36 to $60 [1]

Core Viewpoint - U.S. airline stocks experienced a strong performance on Friday, with Southwest Airlines receiving a significant upgrade from Morgan Stanley, which raised its rating from "Underweight" to "Overweight" and increased the target price from $36 to $60 [1] Group 1: Stock Performance - Southwest Airlines (LUV.US) rose over 3.4% [1] - American Airlines (AAL.US) and Alaska Airlines (ALK.US) increased by more than 2% [1] - JetBlue Airways (JBLU.US), United Airlines (UAL.US), and Delta Air Lines (DAL.US) saw gains of over 1% [1] Group 2: Analyst Actions - Morgan Stanley upgraded Southwest Airlines' rating from "Underweight" to "Overweight" [1] - The target price for Southwest Airlines was raised from $36 to $60 [1]

Upgrades - Wells Fargo upgraded Airbnb (ABNB) to Equal Weight from Underweight with a price target of $128, up from $118, citing two years of share underperformance and opportunities in hotel supply and sponsored listings, along with relative insulation from AI risk [2] - Barclays also upgraded Airbnb to Equal Weight from Underweight with a price target of $120, up from $107 [2] - Susquehanna upgraded American Airlines (AAL) to Positive from Neutral with a price target of $20, up from $14, noting a constructive fundamental backdrop for airlines into fiscal 2026 [2] - JPMorgan double upgraded Southwest (LUV) to Overweight from Underweight with a price target of $60, up from $36, highlighting a potential for a $5 earnings per share outlook for 2026 [2] - Berenberg upgraded CrowdStrike (CRWD) to Buy from Hold with an unchanged price target of $600, citing valuation following recent underperformance [2] - BofA upgraded FedEx (FDX) to Buy from Neutral with a price target of $365, expecting demand to be aided by infrastructure investments and $1.4 trillion in expected expenditures over the next three years [2]

Core Insights - The carrier's potential earnings per share guidance is generating significant excitement on Wall Street [1] Summary by Categories - **Earnings Potential** - The carrier's guidance on potential earnings per share is a focal point of interest for investors [1]

Core Viewpoint - Southwest Airlines Co. (LUV) experienced a significant increase in early trading after JPMorgan upgraded the airline stock to an Overweight rating from a previous Underweight stance, indicating a positive outlook for the company [2] Group 1 - JPMorgan's analyst Jamie Baker and his team believe there is potential for growth in Southwest Airlines, which contributed to the stock upgrade [2]

Group 1 - Citi raised the price target on Southwest Airlines (LUV) to $44 from $38 while maintaining a Neutral rating on the shares [1] - The update on targets in the airlines group is part of a Q4 earnings preview [1] - Citi's business travel barometer has reached its lowest point, indicating a potential recovery in business travel [1] Group 2 - Despite the positive indicators, the firm anticipates that supermajors will provide "conservative" outlooks for 2026 [1]