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StocksUpdated•Originally published 27 April 2026•Updated 27 April 2026•
1 min read

TD Cowen Raises Southwest Airlines Price Target Despite Revenue Miss

Key Facts

1TD Cowen increased its price target for Southwest Airlines to $47.00 from $46.00 while maintaining a buy rating.
2The company reported Q1 2026 EPS of $0.45, meeting expectations, but missed revenue forecasts with $7.25 billion against an expected $8.46 billion.

TD Cowen has raised its price target for Southwest Airlines (LUV) to $47.00 while maintaining a 'Buy' rating following the company's Q1 2026 financial results. Despite a return to profitability and achieving record Q1 revenue driven by high-yield product options, the company's shares fell 5.7% in recent trading. Earnings per share reached $0.45, meeting expectations, but the $7.25 billion in revenue missed the $8.46 billion analyst forecast. Management attributed the underlying performance to successful monetization efforts and new premium product segments. The updated price target implies an 18.9% upside, though the broader market consensus remains at 'Hold' due to top-line concerns. This update highlights a disconnect between the airline's record operational milestones and the immediate negative stock price reaction.