Investing.com — UBS analysts increased their price target for Delta Air Lines Inc (NYSE:), citing strong revenue growth per available mile (RASM) and improving earnings estimates for 2025 and 2026.
UBS raised the target to $90 from $88 and maintained a “buy” rating on the stock.
Delta's strong Q4 2024 results exceeded market expectations, with sequential RASM growth accelerating in all regions, led by Asia-Pacific and Atlantic.
UBS highlighted Delta's diverse network and distinct focus on travel as key drivers of its outperformance. Premium sales rose 8% in the fourth quarter, outpacing main compartment growth of 2%, indicating continued strength in higher-margin segments.
For 2025, Delta management has guided for earnings per share (EPS) of at least $7.35. UBS expects an upside to this guidance, forecasting $7.73 in EPS for the year.
Analysts believe main cabin revenues could improve further as the year progresses, given easier year-over-year comparisons in the second half. Cost management also remains a positive factor, with CASM-ex (cost per available seat, excluding fuel) expected to decline through efficiency gains.
UBS maintains its bullish stance on Delta, stressing that the airline is well positioned to benefit from strong air travel demand and premium trends. With a favorable revenue outlook and disciplined cost management, Delta is poised for sustainable earnings growth, supporting the high price target, analysts said.
