Susquehanna Lifts PT on Southwest Airlines Co. (LUV) to $55 From $45 – Here’s Why

Core Viewpoint - Southwest Airlines Co. (NYSE:LUV) is considered one of the most undervalued travel stocks, with hedge funds showing interest in its potential for growth and recovery [1][2]. Group 1: Price Target Adjustments - Susquehanna raised the price target for Southwest Airlines Co. to $55 from $45 on February 3, maintaining a Neutral rating, citing significant progress in turnaround efforts [1]. - Citi also increased its price target for Southwest Airlines Co. to $54 from $44 while keeping a Neutral rating, expressing a "tactically bullish" outlook on the airline sector following fiscal Q4 reports [3]. Group 2: Company Progress and Strategy - The company is entering 2026 with renewed momentum, having achieved several external and international goals, including the introduction of bag fees and streamlining its corporate workforce [2]. - Southwest Airlines is also focusing on enhancing customer experience by assigning extra-legroom seating [2]. Group 3: Company Operations - Southwest Airlines operates a passenger airline and provides ancillary services such as upgraded boarding, pet transportation, and early bird check-ins [4]. - Its operations extend across the United States and several international locations, including Puerto Rico, Mexico, and the Caribbean [4].