In a report released today, Andrew Didora from Bank of America Securities reiterated a Buy rating on Delta Air Lines (DAL – Research Report), with a price target of $56.00.
Andrew Didora has given his Buy rating due to a combination of factors that highlight Delta Air Lines’ resilience and strategic positioning in a volatile market. Despite the macroeconomic uncertainties and the company’s decision to withdraw its 2025 guidance, Delta has demonstrated strong operational control by adjusting its capacity to match demand, which is a prudent move in the current environment. The company’s recent performance indicators, such as better-than-expected cash sales, stable Amex co-brand card spending, and high international flight bookings, suggest a robust demand outlook, particularly in premium segments.
Delta’s business model, which includes effective cabin segmentation and a profitable loyalty program, positions it well to navigate the current challenges. The company’s ability to generate free cash flow and maintain low net leverage further strengthens its financial standing. Didora maintains a price objective of $56, reflecting confidence in Delta’s capacity to outperform its peers and emerge stronger from the current market conditions, supported by a valuation based on improved EBITDAR expectations.
In another report released yesterday, Citi also reiterated a Buy rating on the stock with a $72.00 price target.