Analyst Ravi Shanker from Morgan Stanley maintained a Buy rating on Delta Air Lines and keeping the price target at $90.00.
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Ravi Shanker has given his Buy rating due to a combination of factors that highlight Delta Air Lines’ strong market position and future growth potential. The company has demonstrated resilience despite recent challenges, such as the government shutdown, which only temporarily impacted bookings and earnings. Management remains optimistic about the demand trends for air travel, particularly in the premium segment, which is expected to drive significant growth in the coming years.
Delta’s partnership with American Express is also a key factor in Shanker’s positive outlook. This collaboration has consistently contributed to revenue growth, and expectations for continued expansion in this area remain high. Additionally, the financial health of Delta’s consumer base, primarily consisting of households with higher income levels, supports sustained demand for travel. These elements collectively suggest a robust earnings trajectory for Delta, justifying the Buy rating.
Shanker covers the Industrials sector, focusing on stocks such as Delta Air Lines, Knight Transportation, and CH Robinson. According to TipRanks, Shanker has an average return of -4.3% and a 41.26% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $77.00 price target.