Delta (DAL) May Score Another Win When It Scoops Up Low Cost Planes
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Price: $82.41 +1.67%
Rating Summary:
30 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
30 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Delta Air Lines Inc. (NYSE: DAL) is one of the Street's favorite airline stocks, a view that is justified according to analysts at Imperial Capital.
"We believe DAL's investments in its business, including the Virgin Atlantic stake, its website and lounges will help it maintain its RASM premium to the industry and drive further earnings growth," said analyst Bob McAdo.
As Boeing (NYSE: BA) and Airbus continue to ship new, fuel-efficiency models, a glut of older planes is beginning to develop, noted McAdo. He thinks this may allow Delta to refresh its older fleet at very attractive pricing.
"Similar to Allegiant (Nasdaq: ALGT), Delta also announced purchase agreements for numerous MD80s, whose parts can be used for its MD-88s and MD-90s. Actions such as these and the previously-announced acquisition of Southwest's B-717 planes indicate to us that this management team continues to look at opportunistic ways to update its fleet with a focus on prudent capital management and returns," concluded the analyst.
Imperial Capital has an Outperform rating on Delta Air Lines with a price target of $18.00.
For an analyst ratings summary and ratings history on Delta Air Lines (NYSE: DAL) click here. For more ratings news on Delta Air Lines click here.
Shares of Delta Air Lines closed at $13.61 yesterday.
"We believe DAL's investments in its business, including the Virgin Atlantic stake, its website and lounges will help it maintain its RASM premium to the industry and drive further earnings growth," said analyst Bob McAdo.
As Boeing (NYSE: BA) and Airbus continue to ship new, fuel-efficiency models, a glut of older planes is beginning to develop, noted McAdo. He thinks this may allow Delta to refresh its older fleet at very attractive pricing.
"Similar to Allegiant (Nasdaq: ALGT), Delta also announced purchase agreements for numerous MD80s, whose parts can be used for its MD-88s and MD-90s. Actions such as these and the previously-announced acquisition of Southwest's B-717 planes indicate to us that this management team continues to look at opportunistic ways to update its fleet with a focus on prudent capital management and returns," concluded the analyst.
Imperial Capital has an Outperform rating on Delta Air Lines with a price target of $18.00.
For an analyst ratings summary and ratings history on Delta Air Lines (NYSE: DAL) click here. For more ratings news on Delta Air Lines click here.
Shares of Delta Air Lines closed at $13.61 yesterday.
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