UPDATE: J.P. Morgan Upgrades Delta Air Lines on Multiple Positive Factors

In a report published Tuesday, J.P. Morgan analyst Jamie Baker upgraded the rating on

from Neutral to Overweight, and raised the price target from $22.00 to $26.00. In the report, J.P. Morgan noted, “Cost convergence, fare unbundling, widespread consolidation, diminished new entrant activity, and return-oriented management teams have combined to form an industry that is actually managing itself for the first time we can recall. This stands in sharp contrast to the historical tendency to wage wars of attrition. As a result, we believe the US airline industry will continue to take steps to ensure profitability and continued balance sheet repair. As such, we recommend investors focus on airlines stocks such as Delta, which we rate Overweight given compelling valuation and favorably industry dynamics and potential to attract significantly longer-term investor interest versus when the industry operated in a more capital-destructive manner.” Delta Air Lines closed on Monday at $23.15.