What Analysts Recommend for Delta ahead of 2Q17 Earnings



Analyst recommendations

According to Reuters’ consensus, 41.2% of analysts tracking Delta Air Lines (DAL) gave the stock a “strong buy” recommendation. 47.1% of the analysts have a “buy” recommendation on the stock, while 11.8% have a “hold” rating. None of the analysts recommended a “sell.”

There have been a few analyst upgrades on the stock. Raymond James has raised its target price from $60 to $63. Citigroup has also raised the target price of the stock to $65 from $63 earlier. It has a “buy” rating on the stock. Morgan Stanley has raised the target price to $59 with an “overweight” rating.

On the other hand, some analysts have downgraded the stock. Berkshire Hathaway decreased its stake in Delta Air Lines by 8.3% to 55 million shares. Soros also sold its complete stake in Delta Air Lines.

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Target price

The stock’s consensus 12-month target price is $63.7, higher than the target price of $63.4 after its 1Q17 results. This target indicates an 18.5% return potential as of the June 30 closing price of $53.70. The highest target price for Delta Air Lines stock is $75, and the lowest target price is $52.

Series overview

Delta Air Lines (DAL) plans to announce its second quarter earnings for 2017 on July 13. In the following series, we’ll look at what investors can expect for 2Q17 and the full year 2017. We’ll also discuss key indicators that investors should look out for.

You can gain exposure to Delta Air Lines by investing in the PowerShares Dynamic Leisure & Entertainment ETF (PEJ), which invests 5.4% of its holdings in the airline. It also invests ~5.3% of its portfolio in American Airlines (AAL), ~4.6% in United Continental Holdings (UAL), and 2.8% in JetBlue Airways (JBLU).


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