UBS Upgrades Southwest Airlines (LUV) to Buy, Raises Target by $22

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UBS has upgraded Southwest Airlines (LUV) from Neutral to Buy and increased its price target from $51 to $73. This upgrade is based on anticipated success from assigned seating and extra-legroom programs, which UBS projects will generate $4.25 to $4.50 in incremental EPS by fiscal 2027. Additionally, Southwest Airlines plans to integrate SpaceX’s Starlink for next-generation Wi-Fi across its fleet, with installations beginning this summer and expanding to over 300 aircraft by the end of 2026.

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