Buy Rating for Delta Air Lines Backed by Strong Operational and Financial Performance

Analyst Stephen Trent from Citi maintained a Buy rating on Delta Air Lines (DAL – Research Report) and keeping the price target at $55.00.

Stephen Trent has given his Buy rating due to a combination of factors surrounding Delta Air Lines’ operational and financial performance. Delta’s recent earnings call highlighted the company’s exceptional operational metrics, such as high completion factors, that stand out in the industry. Additionally, the airline’s positive revenue trends, except for certain challenges in the Trans-Pacific and Latin markets, contribute to its favorable outlook. Delta’s financial strength is further underlined by its profit-sharing payouts and the company’s recognition as a highly admired company, which reflect its solid position in the market.

Furthermore, the improvement in business travel, especially within the technology, consumer services, and financial sectors, signals a robust demand for Delta’s premium cabin offerings. The airline’s anticipation of corporate customers maintaining or increasing travel budgets into the next quarter adds to the optimistic view. Delta’s strategic partnerships, such as the Joint Business Agreement with LATAM Airlines, are also expected to bolster revenue, especially in emerging markets like South America. With the company’s financial ratings showing a positive trend and a significant debt reduction on the horizon, the projected share price return of 16.2% provides a compelling case for the Buy rating.

In another report released yesterday, Melius Research also reiterated a Buy rating on the stock with a $56.00 price target.

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Delta Air Lines (DAL) Company Description:

Georgia-based Delta Air Lines, Inc. is one of the major airlines of the United States and a legacy carrier. The company provides scheduled air transportation for passengers and cargo. It operates through the Airline and Refinery segments.