Imperial Capital: We Still Fly Delta

Loading...
Loading...
In a report published Friday, Imperial Capital analysts maintained an Outperform rating on
Delta Air Lines, Inc
DAL
with a price target of $69. Delta Air Lines reported its 4Q14 results ahead of expectations. "Management is being proactive in addressing capacity in light of a stronger U.S. dollar and in spite of lower jet fuel prices," the analysts said. The company indicated plans to reduce its international capacity by about 3 percent for the 2015 winter schedule. "This includes meaningful reductions in markets that have been most affected by the stronger U.S. dollar. This fall look for cuts of 15-20% in Japan, a 15% reduction in Brazil, a 15-20% reduction to Africa, Middle East and India and suspension of service to Moscow," the analysts wrote. Despite the capacity reductions, Delta Air Lines highlighted that a strong dollar was "a net positive" for the company. "While weaker foreign currencies will serve as a headwind to PRASM, this is more than offset by lower foreign currency denominated expenses and substantially lower jet fuel prices. This combination of impacts appears to be lost on many investors and some sell-side analysts," the report said. The EPS estimates for 1Q15 and 2015 have been raised from $0.43 to $0.45 and from $4.61 to $4.66, respectively.
Loading...
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorReiterationAnalyst Ratingsimperial capital
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...