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NYSE:DAL
This summary was created by AI, based on 10 opinions in the last 12 months.
Delta Air Lines Inc (DAL) has garnered attention due to its robust management of rising fuel costs and expansion amid increasing global air travel demand. The airline recently reported improved cash reserves and reduced debt, while analysts project solid upside potential with price targets ranging from $58.21 to $94. Despite challenges posed by high fuel costs and market volatility, DAL's unique position, including its own oil refinery and a high proportion of premium seats, suggests it is well-positioned for future growth. Some experts express caution due to the potential impacts of geopolitical tensions and economic factors on consumer demand. Overall, DAL appears to maintain a favorable outlook with analysts recommending it as a top pick for investors.
UAL-Q or DAL-N. The airlines are the most prominent businesses that suffered directly from COVID and it is difficult to know when it will improve. Most of these companies have raised money recently. Both score poorly on most metrics he looks at. He would prefer AC-T over these two as it is liable to get government support. CHR-T also.
He likes the airlines and expects the US economy to expand. The number of US airlines have shrunk a lot, down to four, but they are mispriced to their relationship to loyalty-point cards. Delta signed a deal with AmEx where Delta believes they will have $7 billion in excess cash flow by 2023. That's pretty good. Everybody loves loyalty points to buy seats. It benefit consumers and airlines which have done a great job of upselling. Fuel prices have been a concern, but the oil price has remained low. Even if the economy heads into recession, Delta's balance sheet is lean and mean.
Stockchase Research Editor: Michael O'Reilly At some point travelers will return to flying. Analysts at Jefferies upgraded the company, calling for $60. They see the exposure to renewed corporate and transatlantic travel as key. Morgan Stanley has them as the only air carrier they recommend to overweight. With EPS projected around $4 next year, it's priced at 12x earnings today. Now is the time step on board. We would buy this with a stop loss at $35, looking to achieve $55 -- upside over 17%. Yield 0% (Analysts’ price target is $54.76)