Delta Air Lines (DAL) PT Raised to $107 at UBS Ahead of Q2 Results

UBS analyst Atul Maheswari raised the price target on Delta Air Lines (NYSE: DAL) to $107.00 (from $98.00) while maintaining a Buy rating.

The analyst commented, "We model 2Q EPS of $1.38, below BBG cons. of $1.45 (guide $1.00-$1.50). We think there is potential for CASM-ex headwinds for DAL in 2Q as it likely raised pay to overcome crew scheduling issues during 2Q (UBSe 7.0% CASM-ex). Still, fuel is likely to be slightly below $4/gallon (vs. $4.30 guide) with refinery contributing $0.15-$0.20. For 3Q, we model $2.51 in EPS (BBG cons. $1.68), which incorporates 13.7% RASM on 0.5% ASMs and 6% CASM-ex. We also think DAL's non-op costs could be around $200 mm for 2Q and around -$150 mm lower YoY for FY'26. Our FY'26 EPS estimate is now $6.70 (cons. $5.52). Our updated FY'27 EPS est. of $9.71 is above cons. of $8.01. We raise our PT to $107 from $98 (11x our FY'27E EPS - unchanged)."

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