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Investing.com - Bernstein SocGen Group has reiterated an Outperform rating on Delta Air Lines (NYSE:DAL) with a price target of $66.00, following a fireside chat with the airline’s CFO Dan Janki. The stock, currently trading at $55.39, appears undervalued according to InvestingPro analysis, with 11 analysts recently revising earnings estimates upward.
The research firm noted that meeting the company’s second-half guidance will depend primarily on demand trends, with current projections based on assumptions of relatively flat demand year-over-year.
Bernstein indicated that if Transportation Security Administration (TSA) volume returns to low-single-digit growth year-over-year, Delta would likely achieve the higher end of its second-half guidance range.
The airline’s guidance is built on what the CFO described as conservative assumptions, though a significant drop in consumer confidence could potentially create downside risk to these projections.
Bernstein also highlighted that Delta’s year-over-year comparisons will need to account for potential weakness related to the upcoming election cycle.
In other recent news, Delta Air Lines reported a strong second quarter for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $2.10, compared to the forecast of $2.05. The airline also achieved record quarterly revenue of $15.5 billion, slightly exceeding the anticipated $15.42 billion. Following these positive results, several analyst firms have adjusted their outlooks on Delta. Bernstein SocGen raised its price target to $66, citing Delta’s solid performance and stable booking trends, while UBS increased its target to $72, reflecting confidence in potential demand improvement later in the year. Morgan Stanley (NYSE:MS) also raised its price target to $90, highlighting Delta’s positive guidance and potential efficiency gains from reduced capacity. Additionally, Goldman Sachs increased its price target to $67, after Delta’s earnings beat and optimistic full-year 2025 EPS guidance. These developments indicate a favorable outlook for Delta, as analysts express confidence in the airline’s future performance and strategic initiatives.
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