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Delta Air Lines: Analysts’ View before Its 1Q18 Earnings

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Analysts’ consensus on Delta Air Lines

The number of analysts following Delta Air Lines (DAL) has remained constant in the past six months. As of April 5, 2018, 18 analysts are actively tracking Delta Air Lines. All of the analysts gave Delta Air Lines a “buy” recommendation. None of the analysts suggested a “hold” or a “sell.”

Analysts’ consensus suggests a target price of $73 for Delta Air Lines, which implies a return potential of 34.7% over the closing price of $54.21 on April 5, 2018. The consensus target price in the past three months has risen significantly from $67.25, which indicates that analysts are bullish on the stock.

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Delta Air Lines, which reported strong 4Q17 earnings, is expected to have a similar performance in 1Q18. Delta Air Lines plans to expand its routes through a joint venture with Korean Air. Delta Air Lines already received approval from the Department of Transportation and the Korean Ministry of Land, Infrastructure, and Transport. The joint venture is expected to give Delta Air Lines new opportunities. Delta Air Lines has also launched new routes to various destinations. These positive developments are seen as future growth drivers. As a result, all of the analysts are recommending to “buy” Delta Air Lines.

Brokerage recommendations and target prices

  • Imperial Capital raised its target price for Delta Air Lines to $65, which implies a return potential of 20.0% over the closing price of $54.21 on April 5, 2018.
  • Cowen and Company cut the target price for Delta Air Lines to $67.0, which implies a return potential of 27.6% over its closing price on April 5, 2018.

Investors looking for indirect exposure to Delta Air Lines could invest in the First Trust Nasdaq Transportation ETF (FTXR), which has invested 4.1% of its portfolio in Delta Air Lines. The fund also provides exposure to FedEx (FDX), General Motors (GM), and American Airlines (AAL) with weights of 8.0%, 8.0%, and 2.4%%, respectively, as of April 5, 2018.

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