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Investing.com - Raymond (NSE:RYMD) James has reiterated its Strong Buy rating on Delta Air Lines (NYSE:DAL) with a price target of $60.00 following the airline’s second-quarter 2025 results. According to InvestingPro data, Delta currently trades at an attractive P/E ratio of 8.8x, with analysts’ targets ranging from $36 to $88.
The carrier’s Q2 performance was largely in line with expectations, while its third-quarter earnings guidance exceeded recently lowered forecasts, driven by better-than-anticipated revenue and non-fuel cost outlooks. With a market capitalization of $36.7 billion and trailing twelve-month revenue of $61.9 billion, Delta maintains its position as a prominent industry player.
Delta expects revenue per available seat mile (RASM) trends to improve throughout the second half of 2025 as it adjusts capacity and the industry further rationalizes supply, potentially creating a positive environment for more domestic-focused airlines. InvestingPro subscribers can access 8 additional key insights about Delta’s financial health and growth prospects through our comprehensive Pro Research Report.
The company has restored its full-year 2025 guidance, projecting earnings per share of $5.25-6.25, which falls below its original January outlook of $7.35 but exceeds more cautious market expectations of $4.50-5.50.
The midpoint of Delta’s new guidance also surpasses both Raymond James’ forecast of $5.36 and the consensus estimate of $5.38, though the investment firm notes that given current uncertainty levels, few other U.S. airlines are expected to restore their 2025 earnings guidance.
In other recent news, Delta Air Lines reported adjusted earnings per share of $2.10 for the second quarter of 2025, surpassing consensus estimates. The airline has reinstated its full-year earnings guidance, projecting between $5.25 and $6.25 per share, which exceeds the consensus estimate. Citi and Goldman Sachs both reiterated Buy ratings on Delta Air Lines, with price targets set at $62 and $60, respectively. However, UBS lowered its price target for Delta to $63, citing a cautious demand outlook.
Delta has also introduced third-quarter earnings guidance, with expectations of top-line growth and stable costs per available seat mile excluding fuel. In a separate development, SkyWest (NASDAQ:SKYW) announced plans to purchase 16 new E175 aircraft for Delta operations, starting deliveries in 2027. The French civil aviation authorities have asked airlines to cut flights to Paris and other airports due to an upcoming air traffic controller strike. This may lead to disturbances and delays at French airports. These developments are part of Delta’s ongoing strategies and challenges in the aviation industry.
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