2023-04-17 06:49:07 ET
Deutsche Bank sees considerable upside on Delta Air Lines ( NYSE: DAL ) even with the airline company warning on the difficult recovery trajectory for the industry. Analyst Michael Linenberg pointed to a strong Q2 outlook from Delta and thinks the management team has pulled the right levers to outperform airline peers.
"We endorse management's focus on margins, earnings, and cash generation which, in our view, are the surest path to value creation. This is particularly important when the industry is in a fragile state (i.e., subject to delays/cancellations with FAA staffing issues, supply chain problems, inclement weather, etc.). On the latter, Delta has made tremendous progress over the past couple of years in hiring and training staff, investing in its fleet, upgrading technology, etc. in support of its future growth."
Deutsche Bank has Delta Air Lines ( DAL ) slotted with an Outperform rating and a price target of $47 to rep more than 35% upside from the current trading level.
Shares of Delta Air Lines ( DAL ) rose 0.44% in premarket trading on Monday after trading largely flat last week around the Q1 earnings report. Read a breakdown on Delta’s earnings report from Seeking Alpha Investing Group Leader Dierhin Bechai.
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Delta Air Lines is called an airline sector outperformer by Deutsche Bank