UPDATE: Delta Air Lines (DAL) Management Sees 95% Recovery, PT Raised to $65 at Morgan Stanley

(Updated - April 14, 2022 6:17 AM EDT)

Morgan Stanley analyst Ravi Shanker raised the price target on Delta Air Lines (NYSE: DAL) to $65.00 (from $60.00) after 2Q EBIT guidance came in well ahead of expectations despite much worse capacity, Operating Revenues were $8.161 bn, +126.1% y/y while EPS of -$1.23, was also slightly above the consensus of. -$1.27.

The analyst reiterated an Overweight rating, stating "Mgmt. expects a 93-97% recovery in revenue in 2Q on LDD% TRASM growth with 84% capacity restoration. Mgmt. noted that the recovery in business travel has accelerated with domestic now 70% restored with 90% of their corporate survey respondents expecting to travel more in 2Q than 1Q. 1Q saw a $2.8 bn increase in the ATL from $6.6 bn in March 2019 to $9.1 bn at the end of March and mgmt. expects it to continue to grow in 2Q".

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