Delta Air Lines Stock Outlook: Is Wall Street Bullish or Bearish?

Delta Air Lines Inc. (DAL), headquartered in Atlanta, Georgia, offers scheduled air transportation for passengers and cargo in the United States and internationally. With a market cap of $33.91 billion, it is one of the four carriers that control the majority (more than 60%) of the U.S. aviation market. 

DAL stock has significantly outperformed the broader market over the last year. The stock has gained 59.7% over this time frame, while the broader S&P 500 Index ($SPX) rallied nearly 27.2%. In 2024 alone, Delta Air Lines gained 31.9%, surpassing SPX's 10% gains on a YTD basis.

Narrowing the focus, DAL’s outperformance is equally impressive compared to the US Global Jets ETF (JETS). DAL has comfortably outperformed the exchange-traded fund’s 11.3% YTD returns.

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Delta has benefited from increased demand for leisure air travel as a result of its fleet upgrades. On Apr. 10, the company announced earnings of $0.45 per share, beating Wall Street estimates by 25%, and its revenue reached the highest level ever recorded in any first quarter in its history. The stock maintained an uptrend since its Q1 earnings report. 

For the current fiscal year, ending in December 2024, analysts expect EPS growth of 6.6% year over year to $6.66 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.

Among the 17 analysts covering DAL stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buys.” 

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This configuration is slightly more bullish than three months ago, with 16 suggesting a “Strong Buy.”

On May 14, HSBC analyst Achal Kumar initiated coverage on Delta Air Lines at a “Buy” rating with a price target of $72.80. Also, David Vernon from Bernstein maintained a “Buy” rating on Delta Air Lines with a price target of $66.00.

The mean price target of $59.16 represents an 11.5% premium to DAL’s current price levels. The Street-high price target of $85 suggests an ambitious upside potential of 60.2%.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.