Southwest Airlines (LUV) Gets Rare Double Upgrade from JPMorgan Chase

Discount carrier Southwest Airlines (LUV) has received a rare double upgrade from JPMorgan Chase (JPM).

Jamie Baker, a top four-star rated analyst, has lifted his rating on LUV stock to a Buy-equivalent overweight from a Sell-equivalent underweight previously. Baker also placed a street-high $60 price target on the stock, which is 33% higher than where the shares currently trade.

In his assessment, Baker argues that Southwest Airlines’ 2026 guidance could mark a turning point for both sentiment and valuation. The analyst writes that there is “potential for a $5 EPS guide from Southwest to be attractively probable,” a figure that would “handily dwarf the $2.98 consensus for 2026.”

Additional Praise for Southwest Airlines

In addition to the double upgrade, JPMorgan Chase placed Southwest Airlines on its “Positive Catalyst” watch list ahead of the airline’s next earnings report and guidance update that is scheduled for Jan. 29. LUV stock has also gotten a recent upgrade from Jefferies Financial Group (JEF), which is bullish on the airline heading into 2026.

The praise for Southwest comes after the airline forecast record quarterly revenue in its last full financial results released in October. Management has said travel demand has improved and that it should benefit from higher air fares implemented in the past few months.

Southwest has also been working to better compete with rivals and increase sales, abandoning longtime policies such as open seating and two free checked bags for travelers.

Is LUV Stock a Buy?

Southwest Airlines’ stock has a consensus Hold rating among 14 Wall Street analysts. That rating is based on four Buy, nine Hold, and one Sell recommendations issued in the last three months. The average LUV price target of $44.21 implies 0.80% downside from current levels.

Read more analyst ratings on LUV stock