Southwest Airlines Stock Rises on Analyst Upgrade

Shares jump 6.4% after UBS Group boosts rating and price target

Published on Feb. 18, 2026

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Shares of Southwest Airlines (NYSE:LUV) rose 6.4% during mid-day trading on Tuesday after UBS Group upgraded the stock from neutral to buy and increased its price target from $51 to $73. The upgrade comes as Southwest Airlines continues to recover from the pandemic's impact on the airline industry.

Why it matters

Southwest Airlines is one of the largest and most prominent U.S. airlines, so analyst upgrades and stock price movements can signal broader trends in the aviation sector. This upgrade suggests growing optimism about Southwest's financial outlook and recovery prospects.

The details

UBS Group cited several factors in its decision to upgrade Southwest Airlines, including the company's strong balance sheet, cost-control measures, and potential for increased travel demand. The analyst firm now expects Southwest to earn $4 per share in 2026, up from its previous forecast of $1.55 per share.

  • The upgrade was announced on Tuesday, February 17, 2026.

The players

Southwest Airlines

A major U.S. low-cost airline headquartered in Dallas, Texas.

UBS Group

A global financial services firm that provides investment banking, asset management, and wealth management services.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

The upgrade of Southwest Airlines by UBS Group reflects growing optimism about the airline industry's recovery and the company's ability to navigate the post-pandemic landscape. This positive news could signal a broader turnaround for the sector.