Delta Air Lines impress at analyst day, earns new ‘top pick’ status

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Morgan Stanley analysts reinstated DAL as their Top Pick in the sector. They said the event highlighted customer experience, strengthening its position as the leading airline brand. It also provided improved financial guidance for 2Q/FY23 and outlined strategies for achieving $10 EPS/$4 billion FCF by 2025. The analysts reiterated an Overweight rating and price target of $70, although they said the DAL could be a $100 stock.

Deutsche Bank analysts raised their price target to $58 from $47, while reiterating a Buy rating. They said Delta’s investor day showcased its transformation from a transportation company to a premium global consumer brand. They highlighted achievements like ranking as the fifth largest US e-commerce retailer and increasing annual spend on their co-brand credit card. Investors eagerly awaited Delta’s solid financial update, buoyed by the reinstatement of its dividend, signaling positive prospects.

Elsewhere, analysts at Goldman Sachs ($52), Susquehanna ($54), Wolfe Research ($51), also raised their price targets on the stock this morning.