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Investing.com - Bernstein SocGen Group raised its price target on Delta Air Lines (NYSE:DAL) to $66.00 from $60.00 while maintaining an Outperform rating. The airline, currently trading at an attractive P/E ratio of 7.37x with a market capitalization of $35.79B, has shown strong momentum with an 11.64% gain over the past week.
The firm cited Delta’s solid second quarter results, which included adjusted earnings per share of $2.10, 2% ahead of consensus expectations. Delta’s top line performance was slightly above market expectations, with trailing twelve-month revenue reaching $61.92B. According to InvestingPro, the company maintains a "GREAT" overall financial health score of 3.22.
Delta has re-established its fiscal year 2025 guidance at a level 8% above consensus, according to Bernstein SocGen. The airline reported that booking trends have stabilized at flat year-over-year levels, while premium demand remains robust, up 5% compared to main cabin bookings which are down 5%.
The company’s partnership with American Express (NYSE:AXP) continues to strengthen, with remuneration up 10% and expected to reach $8 billion this year. Delta also anticipates revenue per available seat mile (RASM) trends to improve sequentially as the industry trims capacity.
Bernstein SocGen expressed optimism that industry-wide capacity discipline will support a stronger end of the year, potentially reinforcing the structural bull case for the airline sector.
In other recent news, Delta Air Lines reported impressive financial results for the second quarter of 2025, surpassing analyst expectations with earnings per share of $2.10, compared to the forecast of $2.05. The airline achieved a record quarterly revenue of $15.5 billion, slightly above the anticipated $15.42 billion. Following these results, several financial firms adjusted their outlook on Delta. Goldman Sachs raised its price target to $67 from $60, citing Delta’s earnings beat and improved guidance for the September quarter and full-year 2025. UBS also increased its price target to $72 from $63, maintaining a Buy rating, while noting Delta’s conservative demand forecasts despite positive management commentary.
Morgan Stanley (NYSE:MS) raised its price target on Delta to $90 from $88, maintaining an Overweight rating and highlighting positive consumer behavior and expected operational efficiency improvements. Delta’s management discussed plans to reduce capacity in the second half of the year, which could enhance financial performance. The company also provided a positive outlook, projecting full-year EPS guidance ranging from $5.25 to $6.25 and anticipating free cash flow of $3-4 billion. Delta’s strategic initiatives, including expanding premium services and forming new partnerships, are expected to drive future growth.
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