Southwest Airlines Co. (LUV) Target Increased to $35 at Redburn Despite Sell Rating

Southwest Airlines Co. (NYSE:LUV) is among the 12 Best Very Cheap Stocks to Buy in 2026.

On March 5, Rothschild & Co Redburn raised its price target on Southwest Airlines Co. (NYSE:LUV) to $35 from $27 while maintaining a Sell rating. The analyst said domestic airline capacity growth is accelerating during the year and warned that geopolitical tensions involving Iran could introduce disruptive pressures and lead to significant fuel cost inflation. Higher fuel prices prompted the firm to lower its earnings forecasts for airlines and anticipate further downward revisions across industry consensus estimates during the year.

Previously, on February 27, TD Cowen upgraded Southwest Airlines Co. (NYSE:LUV) to Buy from Hold and raised its price target to $66 from $50. The firm argued that airline demand appears to be strengthening in 2026 while supply growth remains relatively disciplined. Analysts expect Southwest to increase its guidance during March and believe improving earnings estimates could support higher share prices. TD Cowen also suggested that the broader improvement in the airline industry environment makes negative earnings revisions for Southwest less likely during the year.

Southwest Airlines Co. (NYSE:LUV) is a major U.S. airline headquartered in the Love Field neighborhood of Dallas, Texas. The company was originally incorporated as Air Southwest Co. on March 15, 1967, by Herb Kelleher and Rollin King with the goal of offering low-cost intrastate flights within Texas. The airline officially adopted the name Southwest Airlines in 1971 and has since grown into one of the largest domestic carriers in the United States. The company is fifth in the list of 12 best very cheap stocks to buy in 2026.

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