Evercore ISI analysts raised their price target for Delta Air Lines (NYSE:DAL) to $65 from $60, while maintaining their Outperform rating on the stock ahead of the company’s second-quarter earnings on July 11.
The analysts noted that Delta is observing signs of structural improvement within the industry for the fall, despite high industry capacity levels in June and July. Delta reported strong operational reliability in the second quarter, which provided a slight boost to capacity and unit cost. Additionally, fuel costs have been trending lower than initial guidance, even when accounting for a reduced refinery benefit.
Third-quarter earnings expectations appear reasonable, according to the analysts. Looking forward to the fourth quarter, they remind investors that Delta’s corporate revenue recovery was previously impacted by strikes in the auto and entertainment industries in Detroit and Los Angeles, respectively. The analysts adjusted their full-year 2024 and 2025 earnings per share estimates to $6.75 and $7.35, up from the prior estimates of $6.65 and $7.25.