Bank of America Securities analyst Andrew Didora reiterated a Buy rating on Delta Air Lines today and set a price target of $74.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Andrew Didora has given his Buy rating due to a combination of factors including Delta Air Lines’ strong demand and strategic initiatives. Following the third-quarter results and a meeting with Delta’s CFO, Didora noted that the company’s earnings outlook is positive, with a long-term strategy that aligns with the framework presented at the 2024 investor day. The structural changes in the industry also position Delta as a key beneficiary, prompting an increase in the price objective to $74.
Delta’s performance is further bolstered by strong corporate demand, significant revenue growth in premium cabins, and a recovering Atlantic market. Corporate revenue showed acceleration in the third quarter, particularly in coastal markets, and premium cabin growth outpaced the main cabin. Additionally, Delta’s long-term strategy focuses on premium revenue growth, loyalty programs, and maintenance, repair, and overhaul (MRO) business, which supports their goals of improved operating margins and free cash flow. These factors contribute to an optimistic earnings per share (EPS) outlook, with adjustments made to reflect the strong third-quarter results and future projections.
In another report released on October 13, TD Cowen also maintained a Buy rating on the stock with a $72.00 price target.
Based on the recent corporate insider activity of 72 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DAL in relation to earlier this year.