Delta Air Lines Stock: Analysts Have a Bullish Stance


Jun. 5 2019, Updated 9:52 a.m. ET

Analysts’ bullish stance

Analysts have a bullish stance on Delta Air Lines (DAL). Analysts’ bullish stance was reflected in their ratings. The analysts polled by Reuters have provided Delta Air Lines with a consensus “buy” recommendation and a rating of ~1.95. Analysts expect a strong double-digit upswing in the company’s stock price over the next year.

Seven of the 21 analysts covering Delta Air Lines stock recommended a “strong buy,” eight recommended a “buy,” and six recommended a “hold.” Analysts’ average target price of $66.37 on the stock signifies a return of 22.2% in the next year.

The company’s better-than-expected quarterly results for seven consecutive quarters drove the bullish sentiment. Delta Air Lines’ top and bottom-line results have marked a significant year-over-year improvement in the last seven quarters.

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The company is increasing its premium seating capacity and enhancing non-ticket offerings to drive its total revenues. Cost-cutting initiatives are boosting Delta Air Lines’ earnings. Going forward, analysts expect Delta Air Lines’ cost-control measures along with the One Delta and fleet transformation initiatives to continue to increase its profits.

Peers’ ratings

Analysts have maintained a bullish stance on most US airlines. They have provided a consensus “buy” recommendation on Spirit Airlines (SAVE), United Airlines (UAL), and Southwest Airlines (LUV). Spirit Airlines, United Airlines, and Southwest Airlines’ target prices show a potential upside of 37.6%, 30.1%, and 21%, respectively, from their current prices.

To get exposure in the passenger airline industry, investors could consider the iShares Transportation Average ETF (IYT), which has allocated 16.7% of its funds in the space. IYT has gained 10.3% in 2019. IYT has outperformed the Dow Jones, which has risen 8.6%.


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