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

Core Insights - Southwest Airlines Co. (NYSE:LUV) is recognized as one of the 10 Best Stocks to Buy according to Elliott Investment Management [1] - UBS upgraded Southwest Airlines' rating from Neutral to Buy and increased the price target from $51 to $73, anticipating that the airline will exceed initial targets for assigned seating and extra-legroom programs [2] - UBS expects these initiatives, along with checked bag fees, to generate an incremental earnings per share of $4.25 to $4.50 by fiscal 2027 [2] Developments - On February 11, 2026, Southwest Airlines announced plans to integrate SpaceX's Starlink into its fleet, offering next-generation Wi-Fi across its network in 11 countries [3] - Starlink aims to provide an at-home experience in the air, allowing customers to stream shows, watch live sports, download music, play games, work, and connect with loved ones from takeoff to landing [4] - The airline plans to have Starlink-equipped aircraft enter service in the summer and aims to expand high-speed internet connectivity to over 300 aircraft by the end of 2026 [4] Company Background - Founded in 1967, Southwest Airlines is a major U.S. carrier known for pioneering the low-cost, point-to-point model, with its headquarters located in Texas [5]