UBS Upgrades Delta Air Lines (DAL) to Buy

UBS analyst Myles Walton upgraded Delta Air Lines (NYSE: DAL) from Neutral to Buy with a price target of $53.00 (from $44.00).

The analyst commented, "Much better than expected 2Q TRASM trends drive our upgrade to Buy on the back of higher estimates and price target. The implied 12% improvement in TRASM in 2Q22 vs. 2Q19 is well ahead of the mid-SD we thought possible and implies a unit revenue gain 35% larger than the unit cost increase due to fuel highlighting the current ability of Delta to push through elevated costs. DAL has been slower than peers to restore capacity by choice as latest schedules suggest -16% vs 2019 in 2Q while our coverage avg ex-DAL is -7%, but that restraint has allowed for consistent solid operating performance and we suspect share pick-ups as others struggle. 2Q CASM-ex is a touch higher but the company's unique refinery asset provided a bit more hedging benefit given blown-out crack spreads than would be usually the case."

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 $42.36 yesterday.

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