UBS Reiterates Buy Rating on Southwest Airlines with $61 Target

UBS maintains its buy rating for Southwest Airlines, setting a $61 price target, a 17.15% upside from the current price.

Editorial illustration for Southwest Airlines Co. (LUV)

Key Points

  • UBS reiterated its buy rating on Southwest Airlines Co. (NYSE: LUV) with a price target of $61 as of June 23, 2026.
  • UBS's $61 price target implies 17.15% upside from Southwest Airlines Co.'s ($LUV) current $52.07 share price.
  • Shares of LUV traded at $49.52 on Tuesday, with a market cap of $23.7 billion and a P/E ratio of 32.38.
  • Other analysts like Morgan Stanley also maintain buy ratings, while Jefferies holds a neutral stance.

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UBS reiterated its buy rating on Southwest Airlines Co. (NYSE: LUV) on June 23, 2026, setting a price target of $61. Analyst Atul Maheswari maintained the positive outlook for the airline, suggesting confidence in its performance.

Analyst rating track record

UBS vs. the S&P 500

YTD return +7.20% hypothetical
All-time return +23.22% S&P 500 +25.54%
vs. S&P 500 -2.32% behind the index

Hypothetical, simulated performance of disclosed positions vs. the S&P 500. Not realized profit and not investment advice. Past performance does not indicate future results. Details.

Southwest Airlines Co. Stock Up 31.4%

Shares of Southwest Airlines traded at $49.52 on Tuesday. The company has a market cap of $23.7 billion and a P/E ratio of 32.38, with a forward P/E of 10.73. The stock's 52-week range is between $28.98 and $55.11, while its 50-day and 200-day moving averages are $41.11 and $39.39, respectively. Southwest Airlines has a beta of 1.156, indicating moderate volatility compared to the market.

12-month forecast

$LUV price target

Past daily closes and this analyst's 12-month price target. Not investment advice.

Recent Earnings

Southwest Airlines reported revenue of approximately $28.88 billion, with a growth rate of 12.8%. The company achieved a net margin of 2.83% and a return on equity of 10.06%. Its earnings per share were $1.50. The next earnings report is expected on July 22, 2026.

Dividend

Southwest Airlines offers an annual dividend rate of $0.72, yielding 1.5%. The dividend payout ratio stands at 48%.

Insider Buying and Selling at Southwest Airlines Co.

On May 7, 2026, several insiders, including Christopher Reynolds, Pierre Breber, Patricia Watson, David Hess, David Grissen, and Lisa Atherton, each purchased 4,108 shares of Southwest Airlines. These transactions were not part of any planned trading programs.

Analysts Set New Price Targets

On June 23, 2026, UBS reiterated its buy rating with a $61 price target for Southwest Airlines. Previously, on June 16, 2026, Jefferies maintained a hold rating with a $44 target. Morgan Stanley also maintained a buy rating with a $60 target on June 1, 2026. The consensus among analysts is a hold rating, with a mean target price of $45.95 based on 23 opinions.

About Southwest Airlines Co.

Southwest Airlines Co., headquartered in Dallas, Texas, operates as a major passenger airline providing scheduled air services in the U.S. and internationally. It offers a variety of services, including the Rapid Rewards loyalty program, in-flight entertainment, and additional services like baggage fees and EarlyBird Check-In. As of the end of 2025, Southwest operated 803 Boeing 737 aircraft, serving 117 destinations.

Bottom Line

UBS's reiterated buy rating and $61 target reflect continued confidence in Southwest Airlines' potential. Investors keep a close eye on such ratings as they provide insight into analyst expectations. However, these ratings are backward-looking and may not reflect current conditions.

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