UBS Raises Southwest Airlines (LUV) Price Target to $54

On October 23, 2026, UBS reaffirmed its Buy rating on Southwest Airlines Co. (NYSE:LUV) and raised its price target from $52.00 to $54.00. The note from the firm underscores confidence in the carrier's forward outlook as shares trade around $41.74.

LUV Southwest Airlines Co.

$41.25 ▲ +1.23% year to date

1M 3M YTD

Daily close · Oct 23, 2026

UBS's Call on Southwest Airlines

In a research note issued on October 23, 2026, UBS maintained its Buy rating on the carrier and bumped its price target up to $54.00 from $52.00. The adjustment follows earlier action from the same firm on October 16, 2026, when it kept a Buy rating with a $52.00 target.

Other Institutional Activity in Southwest Airlines Co.

Large institutional investors made notable adjustments to their portfolios during the second quarter. Primecap Management Company grew its holdings by 1,727,478 shares, ending with 48,797,725 shares worth about $2.04 billion. Franklin Resources, Inc. added 2,192,641 shares, bringing its total to 46,578,090 shares valued at roughly $1.94 billion. Elliott Investment Management L.P. reduced its stake by 6,039,066 shares to hold 24,308,000 shares worth about $1.01 billion. Ameriprise Financial, Inc. grew its holdings by 792,775 shares, finishing the period with 10,777,353 shares valued at approximately $450.0 million.

Southwest Airlines Co. Stock Up 4.7%

The stock recently traded around $41.74, sitting above its 50-day moving average of $40.72 but below its 200-day moving average of $43.46. Shares closed at $41.75 on October 23, 2026. The company carries a market capitalization of $20.56 billion and a price-to-earnings ratio of 19.46, with a forward P/E of 9.89.

Recent Earnings

Southwest Airlines reported trailing twelve-month revenue of $31.55 billion and trailing earnings of $2.16 per share. The carrier generated a net profit margin of 3.3% and a return on equity of 13.9%, alongside a year-over-year revenue growth rate of 21.2%. The company's next quarterly earnings report is scheduled for January 27, 2027.

Dividend

The company pays an annual dividend rate of $0.72 per share, translating to a dividend yield of 1.71%. The payout ratio stands at 45.0%.

Insider Buying and Selling at Southwest Airlines Co.

Lisa M. Atherton, a director at the company, sold 118 shares on April 7, 2026, at an average price of $37.95 for a total value of $4,478.00.

Analysts Set New Price Targets

Wall Street firms have actively updated their views on the carrier. TD Cowen maintained a Buy rating with a $47.00 target on October 2, 2026, lowering it from $48.00. Susquehanna maintained a Neutral rating with a $45.00 target on October 7, 2026, down from $50.00. JP Morgan maintained an Overweight rating on the stock with a $58.00 target on October 23, 2026, down from $59.00. Across Wall Street, the stock carries a consensus buy recommendation from 23 analysts with a mean price target of $49.18.

About Southwest Airlines Co.

Headquartered in Dallas, Texas, Southwest Airlines operates a major passenger airline business providing scheduled air transportation across the United States and international destinations. The carrier also runs the Rapid Rewards customer loyalty program, the SWABIZ online corporate booking tool, and provides onboard entertainment alongside snack and beverage services.

Bottom Line

UBS's increased target to $54.00 reflects continued optimism from the firm regarding the carrier's operational trajectory. Investors will watch the upcoming earnings release on January 27, 2027, for further details on traffic trends and margin performance.