DAL Stock: $57 Target (Down From $58) By Stifel

By Amit Chowdhry ● April 20, 2021
  • The shares of Delta Air Lines, Inc. (NYSE: DAL) have received a price target decrease from $58 to $57 by Stifel. These are the details.

The shares of Delta Air Lines, Inc. (NYSE: DAL) have received a price target decrease from $58 to $57 by Stifel. And Stifel analyst Joseph DeNardi is maintaining a “Buy” rating on the company shares.

“Delta reported 1Q adjusted EPS of -$3.55. 2Q revenue guidance was lower than projected with -50-55% y/2y indicating only a modest sequential improvement over March. Part of the drag is coming from continued middle-seat blocking (through April) and the remainder seems to be a mixture of business and long-haul international demand weakness,” wrote DeNardi in a research report via Street Insider.

DeNardi noted that 3 things had stuck out from the company’s earnings report. For example, the company said:

1.) Leisure demand is returning quickly at 85% recovered

2.) Long-haul international demand has been returning slowly – Atlantic/Pacific down about 88% “y/2y with no expectation for a major near-term uptick.”

3.) Business demand remains weak — which was down about 75% to 80% y/2y “with Delta’s quarterly corporate survey indicating a slower return of major corporates – Travel fully restored by 2022: 36% (-4pts vs. 4Q); By 2023: 16% (+5pts vs. 4Q); Unsure: 40% (-2pts vs. 4Q) and Never: 8% (+1pt vs. 4Q).”

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