Southwest Airlines Upgraded to Buy at TD Cowen

Analysts see potential 29% upside for the airline's stock.

Published on Feb. 27, 2026

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TD Cowen upgraded shares of Southwest Airlines (NYSE:LUV) from a "hold" rating to a "buy" rating and set a $66.00 price target on the stock. The brokerage cited the airline's strong performance and growth potential as reasons for the upgrade.

Why it matters

The upgrade from TD Cowen is a positive sign for Southwest Airlines, which has faced challenges in the past few years due to the COVID-19 pandemic. The higher price target suggests analysts see significant upside potential for the stock, which could boost investor confidence in the company.

The details

In the research note, TD Cowen said it believes Southwest Airlines is well-positioned for growth and profitability going forward. The analysts cited the airline's strong balance sheet, efficient operations, and focus on customer service as key factors driving their bullish outlook.

  • The research note was issued on Friday, February 27, 2026.

The players

TD Cowen

An equity research firm that covers the airline industry.

Southwest Airlines

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

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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 from TD Cowen is a positive sign for Southwest Airlines, suggesting the airline's strong performance and growth potential are being recognized by analysts. This could boost investor confidence and lead to further gains for the stock.