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Investing.com - BofA Securities raised its price target on Delta Air Lines (NYSE:DAL) to $60 from $56 while maintaining a Buy rating, citing the airline’s better-than-expected earnings guidance. Currently trading at $57.19 with a P/E ratio of 10.09, Delta commands a market capitalization of $37.52 billion. According to InvestingPro data, analyst targets range from $36 to $88, with a strong consensus recommendation of 1.46 (Buy).
The airline slightly beat its second-quarter 2025 earnings per share guidance midpoint and initiated third-quarter EPS ahead of both Street and investor expectations. Delta also reinstated its 2025 EPS guidance at $5.25-6.25, approximately 7% ahead of consensus estimates and 15% above investor expectations. With trailing twelve-month revenue of $61.94 billion and a healthy free cash flow yield of 9%, Delta has demonstrated strong financial performance. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report.
BofA Securities highlighted Delta’s premium and international network as unique advantages, while noting its free cash flow guidance of $3-4 billion this year (representing a 10% free cash flow yield) serves as a meaningful differentiator in the airline industry.
The analyst pointed to Delta’s outlook for unit revenue improvement in the second half of 2025 as the industry continues to rationalize capacity. The implied outlook for fourth-quarter 2025 revenue growth is approximately 1%, representing a deceleration from the third quarter.
BofA Securities considered Delta’s implied outlook reasonable given the third-quarter total revenue beat, noting the fourth-quarter deceleration reflects easier CrowdStrike (NASDAQ:CRWD) comparison metrics in the third quarter and strong industry trends from the fourth quarter of 2024.
In other recent news, Delta Air Lines reported second-quarter 2025 earnings, with an adjusted earnings per share of $2.10, surpassing consensus estimates by five cents. The airline reinstated its full-year earnings guidance, projecting earnings per share between $5.25 and $6.25, which exceeds cautious market expectations. Raymond (NSE:RYMD) James reiterated a Strong Buy rating with a $60 price target, while Citi and Goldman Sachs both maintained Buy ratings with price targets of $62 and $60, respectively. UBS, however, lowered its price target to $63 from $66, citing a cautious view on demand and revenue per available seat mile performance. Despite this adjustment, UBS maintained its Buy rating, indicating continued confidence in Delta’s investment potential. Additionally, Delta anticipates improved revenue per available seat mile trends for the latter half of 2025. Meanwhile, French aviation authorities have requested airlines, including Delta, to cut flights to French airports due to an upcoming air traffic controller strike. This strike is expected to cause disturbances and delays at airports across France.
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