Delta Air Lines Soars as Jefferies Upgrades to 'Buy'
Analyst sets a new $70 price target, citing strong revenue forecasts and potential for margin expansion for the airline carrier.
Delta Air Lines (DAL) received a significant vote of confidence from Wall Street this week, as investment firm Jefferies upgraded the carrier's stock to 'Buy' from 'Hold'. The move, led by analyst Sheila Kahyaoglu, included a new, more optimistic price target of $70, suggesting considerable upside from its current trading levels.
The bullish revision is underpinned by several key factors, reflecting a strengthening outlook for the airline. Jefferies expressed confidence in Delta's top-line performance, particularly after the company . This adjustment has bolstered expectations for the fourth quarter and the upcoming year.
Furthermore, the analyst action signals strong belief in the airline's ability to drive profitability. Despite some anticipated short-term pressures, Jefferies highlighted Delta's potential for significant as a core driver of the upgrade. The firm's earnings per share (EPS) estimates for the coming quarters are now notably above the market consensus, indicating a belief that Delta will outperform expectations.
The upgrade places Jefferies among the more bullish analysts covering the stock. While the for Delta stands at approximately $68, Jefferies' $70 target points to a conviction that the market is underestimating the carrier's forward momentum. This positive sentiment from a major financial institution could attract renewed investor interest in the airline sector, which has been navigating a complex post-pandemic recovery landscape. Investors will be closely watching Delta's upcoming earnings reports to see if the operational performance validates Jefferies' optimistic forecast.