UBS Cuts PT on Southwest Airlines Co. (LUV) to $56 From $59 – Here’s Why

2 days ago 3

Noor Ul Ain Rehman

Tue, March 31, 2026 astatine 10:18 AM CDT 2 min read

Southwest Airlines Co. (NYSE:LUV) is 1 of the champion affordable stocks to bargain with bully net growth. UBS chopped the terms people connected Southwest Airlines Co. (NYSE:LUV) to $56 from $59 connected March 23, reiterating a Buy standing connected the shares. The steadfast told investors successful a probe enactment that pitchy substance prices person risen toward $5/gallon connected the Gulf Coast, which has prompted a penchant for higher-quality airlines similar Delta Air Lines (DAL) and United Airlines (UAL) with stronger margins. In the meantime, carriers with idiosyncratic request drivers specified arsenic Southwest Airlines Co. (NYSE:LUV) whitethorn besides fare comparatively well. It besides said that though March RASM gains were mostly driven by favorable demand-supply conditions, accrued substance costs are expected to measurement connected Q2 earnings, adjacent with fare hikes contributing much to revenue.

Southwest Airlines Co. (LUV) Isn't Doing Well, Says Jim Cramer

Southwest Airlines Co. (NYSE:LUV) besides received a standing update from Citi connected March 20. The steadfast chopped the terms people connected the banal to $44 from $54, reaffirming a Neutral standing connected the shares and stating that it is updating estimates for higher substance prices. It besides sees downside hazard to Q1, Q2, and 2026 estimates astatine astir each airlines successful its coverage. However, Citi besides added that “downside to estimates does not necessitate downside to stocks crossed the board”, arguing that the substance daze is apt to support driving a “fuel wedge” driving meaningful comparative outperformance astatine immoderate airlines.

Southwest Airlines Co. (NYSE:LUV) is progressive successful the cognition and absorption of a rider airline. The institution besides provides ancillary services, including upgraded boarding, proscription of pets and unaccompanied minors, and aboriginal vertebrate check-ins. Its operations are dispersed successful the United States, the Commonwealth of Puerto Rico, Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.

While we admit the imaginable of LUV arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 15 Stocks That Will Make You Rich successful 10 Years AND 12 Best Stocks That Will Always Grow.

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