© Reuters. Cowen Upgrades Delta (DAL) to Outperform, Sees 80% Upside
By Senad Karaahmetovic
Cowen analysts upgraded shares of Delta Air Lines (NYSE:) to Outperform from Market Perform with a $54 per share price target (up from $52).
The raised price target reflects hiked 2022 EPS estimate to $2.84 and 2023 estimates going to $7.00, which analysts say is likely ahead of the management’s guidance. Delta said it expects to record $7.00 EPS for 2024.
“Looking at the 2023 consensus, we believe it is likely to come up as revenue is generally trending above estimates,” analysts said in a client note.
The analysts also expect Delta to post strong Q4 results amid the return of demand for business and international flights. Delta said that its business travel has now recovered between 80%-85% as far as revenue is concerned and 70%-75% recovered in volume.
“The mix of air traffic passengers is shifting with higher yielding business and international passengers making up a greater share. The former is directly correlated with the return to office, while the latter receives a boost from loosening of pandemic restrictions,” the analysts added.
A strong fourth quarter would come after the company posted record quarterly revenue for the third quarter.
Delta stock closed at $30.38 yesterday.
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