Delta Air Lines price target raised to $93 on Boeing finlet upgrade
DAL•Bernstein raised Delta Air Lines price target to $93, implying 11.86% upside from its $83.14 share price, while the carrier is installing finlet modifications on 240 Boeing jets to cut fuel burn and costs. Despite an 18.27% one-month share gain, analysts forecast Q2 EPS of $1.49, down 29.05% year-on-year.
1. Price Target Increase
On June 17, analyst David Vernon lifted Delta Air Lines’ price target from $88 to $93, representing an 11.86% upside from the then-current share price of $83.14. This adjustment reflects confidence in the airline’s strategic initiatives and market positioning.
2. Boeing Finlet Modifications
Delta is rolling out a finlet modification package on 240 Boeing aircraft to reduce aerodynamic drag, lower fuel consumption and cut operating costs. These enhancements are expected to bolster long-term earnings by improving fleet efficiency.
3. Recent Stock Performance
Over the past month, Delta shares have climbed 18.27%, outperforming the Transportation sector’s 6.67% gain. The stock most recently closed at $84.07, marking continued investor optimism.
4. Q2 Financial Outlook
Consensus estimates project Q2 revenue of $17.42 billion, up 4.65% year-over-year, while EPS is forecast at $1.49, down 29.05% from the prior year. Strong operational updates will be crucial to offset the anticipated earnings decline.
