Analyst Sheila Kahyaoglu from Jefferies maintained a Buy rating on Delta Air Lines (DAL – Research Report) and keeping the price target at $85.00.
Sheila Kahyaoglu’s rating is based on several key factors that highlight Delta Air Lines’ potential for growth despite some near-term challenges. The company has lowered its first-quarter revenue and earnings guidance due to reduced consumer and corporate confidence amid macroeconomic uncertainties. However, Delta maintains its 2025 earnings per share (EPS) target of over $7.35, supported by a significant reduction in fuel costs, which have decreased by $10 per barrel from their peak.
Delta’s strong industry position is further reinforced by its disciplined operational and cost management, as well as robust performance in premium, loyalty, and international revenue streams. The company also projects consistent growth in available seat miles (ASM) and controlled costs, which underpin its long-term financial targets, including a 10% EPS compound annual growth rate and mid-teens operating margins. These factors contribute to Kahyaoglu’s confidence in Delta’s ability to deliver solid financial performance, justifying the Buy rating.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $100.00 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.