Citigroup Analyst Boosts Delta Air Lines Price Target by 18%

Citigroup's Stephen Trent raised their price target on Delta Air Lines (NYSE: DAL) by 18.2% from $55 to $65 on 2024/05/29. The analyst maintained their Strong Buy rating on the stock.

According to Trent, Delta and United Airlines Holdings' year-to-date stock price outperformance against both the sector and the S&P 500 Index has not yet eliminated the relative mispricing in the sector. Despite the gains, Trent believes there is still room for further growth.

Trent highlighted that Delta, Alaska Air, American, and especially United are still trading below their pre-pandemic price-to-earnings (P/E) ratios, even though U.S. network airline earnings wallet share has increased significantly compared to 2018 and 2019. In contrast, Southwest is trading well above such levels.

The analyst made it clear that Delta remains Citigroup's preferred U.S. carrier, and United continues to be on their firm's Focus List. This reaffirms their confidence in the long-term potential of these airlines.

On May 29, 2024, Delta Air Lines shares were trading at $49.90, representing a 23.4% year-to-date gain. This positive performance aligns with the analyst's optimistic outlook for the stock.

In addition to the rating on Delta, Trent also made changes to other companies in their portfolio. The analyst lowered their price target on Jetblue Airways Corp by -5.8%, from $6.9 to $6.5, while maintaining a Hold rating. On the other hand, they raised their price target on United Airlines Holdings Inc by 20%, from $80 to $96, and maintained a Strong Buy rating.

Looking at the analyst landscape, 100% of top-rated analysts currently rate Delta Air Lines as a Strong Buy or Buy. No analysts see it as a Hold, and none recommend or strongly recommend selling the stock. This reflects a high level of confidence in Delta's future prospects.

The consensus forecast among analysts is that Delta's upcoming year will deliver earnings per share (EPS) of $7.48. If the analysts' predictions are accurate, Delta's next yearly EPS will be down by 4.5% on a year-over-year basis.

Since Delta's last quarterly report on March 31, 2024, the stock price has increased by 4.2%. Year-over-year, the stock has risen by an impressive 37.5%. During this period, Delta has outpaced the broader market, with the S&P 500 recording a 25.2% increase.

Stephen Trent, the Citigroup analyst responsible for the rating, is ranked by WallStreetZen in the top 13% of Wall Street analysts. With an average return of 12.8% and a 49.2% win rate, Trent specializes in the Utilities and Industrials sectors, among others. Their solid track record adds further credibility to their analysis and recommendations.

Delta Air Lines, Inc. is one of the oldest airlines in operation and is currently the world's second-largest airline in terms of scheduled passengers carried, revenue passenger kilometers flown, and fleet size. Founded in 1929, Delta is headquartered in Atlanta, GA, and operates from nine major hubs.

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WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.