UBS Upgrades Delta Air Lines Price Target, Citing Robust Revenue and Earnings Projections

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UBS analysts have raised their price target for Delta Air Lines Inc (NYSE:DAL) to $90 from $88, maintaining a "Buy" rating, citing strong revenue growth per available seat mile (RASM) and improved earnings forecasts for 2025 and 2026.

Delta's fourth-quarter results for 2024 exceeded expectations, with accelerating RASM growth across all regions, particularly in Asia-Pacific and the Atlantic.

UBS emphasized Delta's diversified network and focus on premium travel as key drivers of its strong performance. Premium sales grew 8% in Q4, outpacing the 2% growth in the main cabin, highlighting strength in high-margin segments.

For 2025, Delta has projected earnings per share (EPS) of at least $7.35. UBS anticipates a higher figure, projecting $7.73 in EPS for the year.

Analysts believe main cabin revenues could see further improvements as the year progresses, with easier comparisons in the second half. Cost management remains a positive factor, with the expected moderation of CASM-ex (cost per available seat mile excluding fuel) through efficiency improvements.

UBS continues to hold a positive outlook for Delta, noting that the airline is well-positioned to benefit from strong air travel demand and premium trends. With a favorable revenue outlook and disciplined cost management, Delta is expected to experience sustained earnings growth, justifying the higher price target.

Paraphrasing text from "Investing.com" all rights reserved by the original author.