Southwest Airlines ( (LUV) ) has risen by 8.40%. Read on to learn why.
Southwest Airlines has seen its stock price rise by 8.40% over the past week, driven by a series of positive analyst upgrades and strategic initiatives. Melius Research upgraded the airline from a ‘Sell’ to a ‘Hold’ rating, citing significant improvements in the company’s performance and a balanced risk-reward profile. The research firm highlighted Southwest’s efforts to stabilize its operations and enhance revenue, which are expected to yield better results in the latter half of 2025.
UBS also upgraded Southwest from ‘Sell’ to ‘Neutral’, praising the airline’s assertive changes, such as charging for bags, which are aimed at improving financial performance. The firm’s analysts believe these aggressive revenue and cost actions will lead to better margins and growing earnings, despite the challenging economic environment for airlines. This positive sentiment from analysts has contributed to the stock’s upward momentum.
Additionally, there has been a notable increase in bullish options activity for Southwest, with a significant number of call options being traded. This indicates investor confidence in the company’s future performance. As Southwest continues to implement its strategic initiatives, investors are optimistic about the airline’s potential for growth and profitability, further fueling the stock’s recent rise.
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