Credit Suisse On Delta: 'No Surprise Is A Good Surprise'

In a report published Thursday, analysts at Credit Suisse maintain their Outperform rating on

, as well as the price target of $62. The company has reported strong 1Q15 results, while its Q2 guidance was in-line with the estimates. "Overall there was little that surprised us, and we would characterize the absence of a negative as an incremental positive given how poor sentiment has been on the group," the analysts said. However, Credit Suisse expects the company's Q2 passenger unit revenues to decline by about 2-to-4 percent, with an international decline of about 6-to-12 percent. "If DAL achieves flat domestic PRASM in Q2, we certainly think the market would view this as a positive given the challenging comp, additional capacity, and lower fuel environment," the analyst added. The analysts expect the company to report positive PRASM for Q4, following international capacity cuts after Labor Day. There would be upside potential to the stock in the event that Delta Air Lines decides on a dividend increase, a significant increase to its buyback or raises its long-term targets. According to Credit Suisse, "With pension contributions for 2015 complete, we expect DAL will ramp its quarterly buyback activity as it enters the strongest cash generation period of the year."