Goldman Sachs Sees Delta's Long-Term Growth On Track: EPS To Hit $9.50 By FY26
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 21 2024
0mins
Should l Buy DAL?
Source: Benzinga
Delta Air Lines Financial Outlook: Analyst Catherine O’Brien from Goldman Sachs highlighted Delta's financial targets, including mid-teens operating margins and significant annual free cash flow, while reaffirming its fourth-quarter guidance and outlining growth expectations for 2025.
Investment Recommendations: O’Brien maintained a Buy rating on Delta, noting the airline's strong balance sheet and premium product strategy, which supports high margins and stable demand; investors can consider exposure through specific ETFs.
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Analyst Views on DAL
Wall Street analysts forecast DAL stock price to rise
18 Analyst Rating
18 Buy
0 Hold
0 Sell
Strong Buy
Current: 71.990
Low
77.00
Averages
83.50
High
90.00
Current: 71.990
Low
77.00
Averages
83.50
High
90.00
About DAL
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company has hubs and markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon, and Tokyo. Its segments include Airline and Refinery. Its airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the United States and around the world and includes its loyalty program, as well as other ancillary businesses. Its refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel as well as non-jet fuel products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- High-End Consumer Demand: Despite rising fuel prices, airlines report strong demand, with Delta CEO Ed Bastian noting that high-end consumers are becoming less sensitive to economic headlines and continue to invest in travel experiences, which is driving recovery in the airline industry.
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- High-Margin Revenue Growth: High-margin revenue streams accounted for 62% of total revenue, with premium offerings growing 14%, indicating a successful transformation that reduces reliance on price-sensitive economy tickets and enhances business resilience.
- Cash Flow and Debt Management: Delta generated $2.4 billion in operating cash flow in the March quarter and paid down $1.6 billion in debt, reducing adjusted net debt to $13.5 billion, demonstrating ongoing financial improvement and enhanced future profitability potential.
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