- Delta Air Lines, Inc. (NYSE: DAL) has received a price target increase from $49 to $58 by Vertical Research. These are the details.
Delta Air Lines, Inc. (NYSE: DAL) has received a price target increase from $49 to $58 by Vertical Research. And Vertical Research analyst Darryl Genovesi is upgrading Delta to “Buy.”
Genovesi believes that Delta’s non-union workforce gives the company cost flexibility that its peers lack to help navigate the pandemic. And Genovesi also said that business travel “won’t be a zero forever.” He believes that Delta shares are expected to triple over 5 years.
In related news, Delta Air Lines is expected to receive $2.9 billion in payroll support payments.
“On January 15, 2021, Delta Air Lines entered into a Payroll Support Program Extension Agreement with the United States Department of the Treasury. Pursuant to the PSP Extension Agreement, Delta expects to receive $2.9B in payroll support payments, which must be used exclusively for the continuation of payment of employee wages, salaries and benefits. The payroll support payments are also conditioned on, among other things, Delta’s agreement to continue essential air service as directed by the U.S. Department of Transportation until March 1, 2022, certain limitations on executive compensation until October 1, 2022, and prohibitions on share repurchases and dividends through March 31, 2022. In addition, the PSP Extension Agreement prohibits Delta from conducting involuntary layoffs or furloughs of U.S. employees through March 31, 2021. The relief payments consist of approximately $2.0B in grants and $830M in an unsecured 10-year loan. Delta received the first installment of $1.4B under the agreement on January 15, 2021 and expects to receive the balance in the March quarter,” stated Delta in a regulatory filing.
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