Stock of the Day

Today's Trend

Southwest Airlines Co. (NYSE: LUV) is getting support from a wave of analyst upgrades and higher price targets, which is helping explain why the stock is moving higher even as the broader airline sector faces renewed fuel-cost pressure.

• Raymond James raised its price target on Southwest Airlines to $60 and reiterated an outperform-style view, signaling continued upside confidence in the airline’s earnings and valuation. Southwest Airlines (NYSE:LUV) Price Target Raised to $60.00 at Raymond James Financial
• Morgan Stanley lifted its target to $65 from $60 and maintained an overweight rating, reinforcing bullish sentiment from Wall Street. Southwest Airlines had its price target raised by Morgan Stanley from $60.00 to $65.00
• Susquehanna increased its price target to $55 from $44, suggesting meaningful upside even while keeping a neutral rating. Southwest Airlines had its price target raised by Susquehanna from $44.00 to $55.00
• Klarna announced a long-term partnership with Southwest to offer flexible payment options to customers, which could support bookings and improve the customer experience. Klarna lands Southwest Airlines, bringing flexible payments to millions of US travelers this fall
• Zacks highlighted Southwest as a strong long-term momentum stock, reflecting favorable technical/quantitative sentiment but not a direct operational catalyst. Why Southwest Airlines (LUV) is a Top Momentum Stock for the Long-Term
• U.S. airlines spent $6.66 billion on jet fuel in May, an 84% year-over-year increase tied to the Iran war and higher fuel costs, which could pressure Southwest’s margins and earnings if the trend persists. US airlines' spent over $6 billion on monthly fuel in May amid Iran war — up 84% from year ago

Overall, LUV appears to be benefiting today from stronger analyst sentiment and new partnership news, while investors are still watching fuel-cost inflation as the main offsetting risk for airline profitability.