Is Delta Airlines Stock A Buy Despite Global Travel Restrictions?
The return of business travel and expected improvements in company fundamentals have turned Raymond James analysts bullish on Delta, Inc. (NYSE:DAL).
The Delta Analyst: Savanthi Syth upgraded Delta from Market Perform to Strong Buy and set a $58 price target.
The Delta Takeaways: Demand for corporate business travel has recovered to 40% of June 2019’s levels and is expected to rise to 60% in September and as high as 80% by the end of the fourth quarter, Syth said in a Thursday note.
Leisure travel is still lagging, yet Delta CEO Ed Bastian noted in an interview with Yahoo Finance the company has “more demand than [it] can serve,” the analyst said.
To address this, Bastian said the company is hiring 1,000 pilots. Furthermore, Delta is expanding its fleet through 2023, said Syth.
Looking forward, “Delta’s balanced capital deployment strategy” and ability “to grow a higher margin business” should sustain its “relative operational and financial leadership vs. legacy peers,” said the analyst.
DAL Price Action: Delta shares gained 1.65% Thursday, closing at $41.35.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.