UPDATE: Deutsche Bank Upgrades Delta Air Lines (DAL) to Buy

February 22, 2021 4:31 AM EST
Get Alerts DAL Hot Sheet
Price: $44.96 +1.15%

Rating Summary:
    15 Buy, 13 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 24 | New: 32
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(Updated - February 22, 2021 6:09 AM EST)

Deutsche Bank analyst Michael Linenberg upgraded Delta Air Lines (NYSE: DAL) from Hold to Buy with a price target of $55.00 (from $47.00).

The analyst comments "We are raising our 12-month price target (PT) on DAL shares from $47 to $55 which is derived by applying a ~7 EV/EBITDAR multiple to our 2022 EBITDAR estimate and a ~5 EV/EBITDAR multiple to our 2023 EBITDAR estimate (which compares to the stock's historical trading range of 5x - 7x, although multiples can trade above the range during a recession/recovery period).represents 10% upside from the stock's last close. The downside risk to our price target is if we fail to see a leveling-off in new COVID-19 cases. Fuel price volatility is also a key downside/upside risk: every 10% move in jet fuel impacts our 2021 EPS estimate by $0.45. Other downside risk factors are economic weakness, government regulation, taxation, airport constraints, safety concerns, the threat of terrorism and war, associated costs/risks with labor negotiations and the revaluation of the stock market resulting in a higher equity risk premium being applied to airline shares."

For an analyst ratings summary and ratings history on Delta Air Lines click here. For more ratings news on Delta Air Lines click here.

Shares of Delta Air Lines closed at $45.67 yesterday.

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