Zacks Downgrades Delta Air Lines to Neutral (DAL)
Delta Air Lines (NYSE:DAL) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a research note issued to investors on Thursday, Analyst Ratings Network reports. They currently have a $33.00 target price on the stock. Zacks‘ price target points to a potential upside of 6.83% from the company’s current price.
Zacks‘ analyst wrote, “We are downgrading our recommendation on Delta Air Lines to Neutral from Outperform. Rise in wages and salaries of contract workers are expected to increase the non-fuel expenses of the company, thus affecting its bottom line. Further, the formation of American Airlines Group and winning of airport slots by Southwest will increase competition for Delta. However, we expect Delta to perform impressively on various strategic measures such as route launches, introduction of ancillary products, strong customer service and revamping of fleet structure. Further, the acquisition of Virgin Atlantic will strengthen Delta’s trans-Atlantic operations. In addition, management’s balanced capital deployment plan is expected to enhance shareholder value going forward.”
DAL has been the subject of a number of other recent research reports. Analysts at Barclays raised their price target on shares of Delta Air Lines from $34.00 to $38.00 in a research note on Tuesday, February 4th. They now have an “overweight” rating on the stock. Separately, analysts at Morgan Stanley reiterated an “overweight” rating on shares of Delta Air Lines in a research note on Wednesday, January 22nd. Finally, analysts at CRT Capital raised their price target on shares of Delta Air Lines from $36.00 to $38.00 in a research note on Wednesday, January 22nd. They now have a “buy” rating on the stock. Three research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company’s stock. Delta Air Lines currently has a consensus rating of “Buy” and an average target price of $33.17.
Shares of Delta Air Lines (NYSE:DAL) traded down 0.42% during mid-day trading on Thursday, hitting $31.00. 4,220,342 shares of the company’s stock traded hands. Delta Air Lines has a 52-week low of $13.16 and a 52-week high of $32.92. The stock has a 50-day moving average of $30.32 and a 200-day moving average of $25.86. The company has a market cap of $26.226 billion and a price-to-earnings ratio of 2.53.
Delta Air Lines (NYSE:DAL) last posted its quarterly earnings results on Tuesday, January 21st. The company reported $0.65 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.63 by $0.02. The company had revenue of $9.08 billion for the quarter, compared to the consensus estimate of $9.03 billion. During the same quarter last year, the company posted $0.28 earnings per share. Delta Air Lines’s revenue was up 5.6% compared to the same quarter last year. Analysts expect that Delta Air Lines will post $2.61 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Friday, March 14th. Shareholders of record on Friday, February 21st will be given a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 0.78%. The ex-dividend date of this dividend is Wednesday, February 19th.
Delta Air Lines, Inc (NYSE:DAL) provides scheduled air transportation for passengers and cargo throughout the United States and around the world.
To view Zacks’ full report, visit www.zacks.com
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.