Thu. 14 Oct 2021, 3:22pm ETBenzinga
In: Analyst Color, News, Price Target, Reiteration, Analyst Ratings
  • Morgan Stanley analyst Ravi Shanker lowered Delta Air Lines, Inc (NYSE:DALprice target to $62 (implying an upside of 50%) from $67 and maintained an Overweight rating on the shares after the company's Q3 results came in better than expected.
  • The stock was impacted by fuel and cost headwind commentary about Q4
  • Shanker, who contends that "taking the pain now for gain later is the right move," noted that Delta management's commentary on holiday season travel, a corporate recovery, and structural cost savings were "strong."
  • Cowen analyst Helane Becker raised Delta Air Line's price target to $54 (implying an upside of 31%) from $53 and maintained a Market Perform rating on the shares. 
  • Becker believes revenue growth won't enable the airline to recover the costs, so margins will continue to be squeezed. 
  • She says that demand is not the issue; costs are the issue and are expected to increase until the route network reaches pre-pandemic levels.
  • Price Action: DAL shares are trading higher by 0.43% at $41.2 on the last check Thursday.