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Delta Air Lines: Analysts Have a ‘Buy’ Rating


Jun. 21 2018, Updated 12:40 p.m. ET

Analysts’ consensus on Delta Air Lines

Since the beginning of 2017, 18 analysts have been actively tracking Delta Air Lines (DAL). All of the analysts have a “buy” rating on the stock. None of the analysts recommend a “hold” or a “sell.”

Analysts’ consensus on Delta Air Lines indicates a target price of $70.76, which implies a return potential of 30.50% over the closing price of $53.84 as of June 20. In the past three months, analysts lowered Delta Air Lines’ target price from $72.30 to the current target price due to the continued increase in oil prices. However, with oil prices cooling down from the peak, analysts might increase Delta Air Lines’ target price.

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Delta Air Lines’ first-quarter earnings beat analysts’ estimate. Currently, everyone’s eyes are on crude oil prices—one of the major determining factors for airline stocks. The decline in crude oil prices from the four-year peak was a relief for airline stocks. Delta Air Lines has new routes, which will likely improve its available seat miles and revenue per available seat miles. As a result, analysts are bullish on the stock and recommend a “buy.”

Analysts’ opinions

  • Raymond James (RJF) reduce its target price for Delta Air Lines from $68 to 66, which implies a return potential of 22.6% over its closing price of $54.44 on June 20.
  • Deutsche Bank (DB) cut Delta Air Lines’ target price to $64, which implies a return potential of 18.9% over its closing price on June 20.
  • Buckingham Research recommended a target price of $70 for Delta Air Lines, which indicates a possible upside of 30.0% from its closing price on June 20.

Investors looking for indirect exposure to Delta Air Lines could invest in the SPDR S&P Transportation ETF (XTN), which has invested 2.3% of its portfolio in Delta Air Lines. XTN also provides exposure to FedEx (FDX) with a weight of 2.5% as of June 20.


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