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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.

While we acknowledge the potential of LUV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LUV and that has a 100x upside potential, check out our report about the cheapest AI stock.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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