Raymond James Raises Southwest Target to $55

Raymond James lifts Southwest Airlines price target to $55 from $45, keeping Outperform rating.
The upgrade cites strong Q2 2026 pretax margin guidance, second only to Delta among the Big 5 carriers.
Analyst dismisses concerns over revenue outlook, noting year‑over‑year revenue outperformance despite lacking premium cabins or long‑haul routes.
Raymond James expects further relative value unlock in upcoming quarters and years as margin recovery continues.