Bernstein analyst David Vernon has reiterated their bullish stance on DAL stock, giving a Buy rating yesterday.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
David Vernon has given his Buy rating due to a combination of factors including Delta Air Lines’ strong second-quarter performance and the reinstatement of its fiscal year 2025 guidance, which is notably 8% above consensus expectations. The company’s ability to maintain industry capacity discipline is anticipated to bolster its performance towards the end of the year, supporting a positive long-term outlook.
Furthermore, Delta’s diverse high-margin revenue streams and the recovery in booking trends, particularly in premium demand, contribute to a confident outlook. The airline’s strategic capacity cuts, especially in off-peak domestic routes, are expected to enhance profitability. The guidance for the second half of the year exceeds market expectations, with a projected improvement in EPS, reinforcing the bullish sentiment and justifying the raised price target of $66.
In another report released yesterday, Goldman Sachs also reiterated a Buy rating on the stock with a $67.00 price target.