Delta Air Lines downgraded to Neutral from Buy at UBS

UBS downgraded Delta Air Lines (DAL) to Neutral from Buy with a price target of $42, down from $77. The firm cites a weaker economic backdrop and increasing visibility to a potential recession for the downgrade. UBS tells investors that it does not expect the company to be immune to the significant cyclical pressure that typically occurs during an economic downturn, and believes the current backdrop of a weaker economic outlook and the sharp move up in tariffs appears likely to cause deterioration in both international and premium segments which is a significant risk for the name.