UBS Rates Southwest Airlines (LUV) buy, $61 Price Target

Analyst Atul Maheswari reaffirmed a buy rating on the Dallas-based carrier, suggesting double-digit upside from current prices.

By EarningsIQ Research Desk · Published Jun 23, 2026, 10:01 AM EDT · Updated Jun 26, 2026, 8:01 AM EDT

Reviewed by automated data checks against the source data. How we make and check alerts

UBS rated Southwest Airlines Co. ($LUV) "buy" with a $61 price target on June 23, 2026.

Since the rating, $LUV is up 4.1% after 1 week, down 9.5% after 1 month and down 19.7% to date (from the $49.18 close on Jun 23, 2026).

LUV Southwest Airlines Co.

$39.50 -3.07% year to date

Daily close · Oct 16, 2026

Key Points

UBS analyst Atul Maheswari reiterated a buy rating on Southwest Airlines (LUV) on June 23, 2026, setting a price target of $61.00 per share.
UBS's $61 price target implies 17.15% upside from Southwest Airlines Co.'s ($LUV) current $52.07 share price.
The stock was trading at $52.07 on the day of the reiteration, meaning the analyst's target sits about 17% above the current market price.
Southwest is scheduled to report its next set of financial results on October 21, 2026, following a year of 16.4% revenue growth.

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UBS analyst Atul Maheswari reaffirmed a buy rating on Southwest Airlines (LUV) on June 23, 2026. The firm set a price target of $61.00, suggesting the carrier has plenty of room to run even as it trades near its recent highs. This rating comes as the airline industry continues to navigate shifting travel demand and operational costs.

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 returns from UBS's disclosed trades, not real profit or advice. How we model this.

Potential Upside for LUV Stock

The gap between the current share price and the UBS target is the focal point for investors. On Tuesday, the stock was trading at $52.07. If the shares reach the $61.00 target, it would represent a significant climb from current levels. The stock has been trading with some strength, staying above its 200-day moving average of $43.51 and its 50-day moving average of $41.31. Over the last year, the price has swung between a low of $29.26 and a high of $55.11.

12-month forecast

$LUV price target

Southwest Airlines Co. daily closes and this analyst's $61 target. Not advice.

Recent Earnings and Growth

Southwest has shown steady top-line expansion, reporting revenue of $30.07 billion. This represents a 16.4% increase in sales compared to previous periods. The airline's profitability remains positive, with earnings per share (EPS) of $1.61 and a net margin of 2.78%. The company is also seeing a return on equity of 11.1%. Investors are keeping an eye on October 21, 2026, when the company is expected to release its next quarterly earnings update.

Southwest Dividend Payouts

The airline currently pays a dividend to its shareholders, offering a yield of 1.76%. With a payout ratio of 0.45, the company uses about 45% of its earnings to fund these dividend payments. This level suggests the company is balancing its commitment to returning cash to investors while keeping enough capital on hand to maintain its fleet of 803 Boeing 737 aircraft.

Analysts Set New Price Targets

Several other Wall Street firms have adjusted their views on Southwest recently. On October 7, 2026, Susquehanna maintained a neutral rating with a $45.00 price target. Earlier, on October 2, TD Cowen kept its buy rating but lowered its target slightly to $47.00. BMO Capital also lowered its target to $50.00 on September 28, though it kept an outperform rating. In contrast, Barclays maintained an overweight rating with a $58.00 target on September 11. Across 23 different analysts, the average price target for the stock is $49.22.

About Southwest Airlines

Southwest Airlines is a major U.S. carrier known for its point-to-point service model and low-cost structure. Based in Dallas, the company flies to 117 destinations across the United States and 10 international markets. Because it operates a single aircraft type, the Boeing 737, the company aims for higher efficiency in maintenance and training than many of its peers. This business model is a key factor in why analysts like UBS are looking at its ability to grow its earnings.

What to Watch

The $61.00 target from UBS is one of the more optimistic views on the street, sitting well above the consensus average. Investors should watch the upcoming October earnings report to see if the carrier's margins can improve. Like all analyst reports, this rating and price target are opinions based on data available on June 23, 2026, and do not guarantee future performance.