Delta Air Lines Inc. (DAL:NYE) Analysts rate with a Strong Buy, $51 target

STA Research
by: STA Research
Delta Air Lines stock

UBS Securities upgraded Delta Airlines to Buy from a Neutral rating, and raised the target to $53 from $44 on the stock price.

Based on the Delta Air Lines Inc. stock forecasts from 12 analysts, the average analyst target price for Delta Air Lines Inc. is USD 51.63 over the next 12 months. Delta Air Lines Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Delta Air Lines Inc. is Neutral, which is based on 5 positive signals and 6 negative signals. At the last closing, Delta Air Lines Inc.’s stock price was USD 42.13. Delta Air Lines Inc.’s stock price has changed by +3.92% over the past week, +4.45% over the past month and -8.71% over the last year.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Delta Air Lines, Inc. was founded in 1924 and is based in Atlanta, Georgia.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

Leave a Reply

Your email address will not be published.