Delta Air Lines named new ‘Top Pick’ in airlines at Morgan Stanley

Morgan Stanley analyst Ravi Shanker choose Delta Air Lines (DAL) as the analyst’s new "Top Pick" for 2023 among North American airlines, replacing Southwest (LUV). Shanker remains bullish on the air travel outlook for "the third year in a row" and has estimates for the group that are 43% above consensus for 2023 and 18% for 2024, on average. Delta management laid out a path to return to $7 EPS by 2024 and Shanker tells investors that "not only are they nicely on track, but we do not think it is far-fetched that they might even get there in 2023." The analyst has an Overweight rating and $65 price target on Delta shares.