Citi analysts initiated a 30-day Positive Catalyst Watch on Delta Air Lines (NYSE:AL) due to their belief that the stock, which holds a Buy rating, has the potential to perform exceptionally well in the upcoming weeks.
The analysts’ optimism stems from the anticipation of Delta’s forthcoming earnings report, which he sees as a positive trigger. They expect the guidance and results to address any previous concerns within the market that suggested a decline in demand. Considering the current robust recovery in travel demand, analysts predict that Delta’s demand trends remained strong during the second quarter.
The analysts said that any fluctuations in advanced purchase patterns and last-minute bookings are more likely indicative of evolving demand trends rather than a weakening of demand itself. He highlighted Delta’s reinstatement of its cash dividend as evidence supporting this point.