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TD Cowen Upgrades Southwest Airlines Co. (LUV) to Buy and Raises its Price Target to $66

Southwest Airlines Co. (NYSE:LUV) is among the 15 Best Stocks to Buy and Hold for the Next 10 Years.

On February 27, 2026, TD Cowen upgraded Southwest Airlines Co. (NYSE:LUV) to Buy from Hold and raised its price target to $66 from $50. The firm said airline demand is strengthening in 2026 against what it described as “disciplined” supply and expects Southwest to raise guidance in March. TD Cowen added that positive earnings revisions could support the shares, arguing that a “rising industry tide” makes negative earnings revisions this year less likely.

On February 17, 2026, UBS also upgraded Southwest to Buy from Neutral and increased its price target to $73 from $51. UBS sees upside to previously outlined initiatives tied to extra legroom and assigned seating and estimates potential incremental EPS of $4.25 to $4.50 from extra legroom, assigned seating, and checked bag fees once these programs reach full maturity by fiscal 2027.

On February 11, 2026, Southwest announced it would roll out Starlink in-flight connectivity across its network in 11 countries. The first Starlink-equipped aircraft is set to enter service this summer, with more than 300 aircraft expected to feature the system by the end of 2026 as part of a broader fleet upgrade to high-speed, low-Earth-orbit satellite technology.

Southwest Airlines Co. (NYSE:LUV) provides scheduled passenger air transportation services in the United States and internationally and offers loyalty, booking, and in-flight entertainment services.

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.

READ NEXT: 12 Best Tech Stocks that Beat Earnings Estimates and 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.

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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.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

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We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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