UBS Upgrades Southwest Airlines to Buy with $73 Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
0mins
Should l Buy LUV?
Source: stocktwits
Southwest Airlines Co (LUV) saw its stock price decline by 5.02% as it crossed below the 5-day SMA, reflecting broader market weakness with the Nasdaq-100 down 0.53% and the S&P 500 down 0.35%.
UBS upgraded Southwest Airlines from Neutral to Buy and raised its price target from $51 to $73, indicating strong confidence in the company's growth prospects. The upgrade is supported by a projected earnings per share increase to $4.25 to $4.50 by FY27 through initiatives like assigned seating and checked bag charges, which are expected to significantly enhance revenue. Despite the stock's decline, the upgrade reflects a positive outlook from analysts amid a generally bearish market.
The implications of this upgrade suggest that while the stock is currently facing downward pressure, the long-term growth strategies and positive analyst sentiment could lead to a recovery in the future. Investors may want to consider the potential upside as the company implements its new revenue strategies.
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Analyst Views on LUV
Wall Street analysts forecast LUV stock price to rise
14 Analyst Rating
4 Buy
9 Hold
1 Sell
Hold
Current: 42.820
Low
34.00
Averages
44.21
High
60.00
Current: 42.820
Low
34.00
Averages
44.21
High
60.00
About LUV
Southwest Airlines Co. (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company's fare products include four categories: Wanna Get Away, Wanna Get Away Plus, Anytime, and Business Select to provide customers options when choosing a fare. It also offers ancillary services, such as EarlyBird Check-In, Upgraded Boarding, and transportation of pets and unaccompanied minors, in accordance with Southwest’s respective policies. Its Rapid Rewards loyalty program enables program members to earn points for every dollar spent on Southwest base fares, also including purchases paid with LUV Vouchers, gift cards, or flight credit, with no portion of the purchase price paid with Rapid Rewards points. It operates over 803 Boeing 737 aircraft in its fleet and serves 117 destinations in 42 states, the District of Columbia, the Commonwealth of Puerto Rico, and ten near-international countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Live Webcast: The event will be webcast live, allowing investors to access it via the Southwest Airlines Investor Relations homepage, which increases information transparency and interaction, fostering communication with investors.
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- Travel Disruptions: The ongoing conflict involving the U.S. and Israel's actions against Iran is causing travel disruptions, affecting airline operations.
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- Overall Industry Strain: The combination of higher costs and operational disruptions is creating significant strain on the airline industry.
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