UBS reiterated a Buy rating on Delta Air Lines and increased its price target to $107 from $98, implying significant upside from the current share price of $90. The firm expects Delta's second-quarter earnings to be a positive catalyst for the airline sector, with earnings per share of $1.38 despite cost pressures from higher energy expenses and pay raises to address crew scheduling. For the third quarter, UBS projects earnings per share of $2.51, well above the consensus estimate of $1.68, driven by a 13.7% revenue per available seat mile on a 0.5% increase in available seat miles. Full-year earnings estimates were also raised to $6.70 per share, compared to the consensus of $5.52.
Delta Air Lines IncUBS raised price target and reiterated Buy, citing strong earnings outlook.
UBS Group AG