Update shared on 30 Nov 2025
Fair value Decreased 0.20%The analyst price target for Delta Air Lines edged slightly lower to $71.60 from $71.75. Analysts cite improved revenue and margin outlooks, but anticipate only minor adjustments following the most recent earnings and guidance updates.
Analyst Commentary
Recent Street research reflects a largely positive sentiment among analysts regarding Delta Air Lines' performance and future prospects. While evaluations remain constructive, they also point to some factors worth monitoring as the company moves forward.
Bullish Takeaways- Multiple bullish analysts have raised their price targets for Delta, with many citing the company's ability to consistently exceed earnings expectations and provide an optimistic outlook for upcoming quarters.
- Improvement in premium and main cabin revenue, especially domestically, continues to bolster Delta's margin profile and support positive valuation adjustments.
- Industry-wide structural changes, such as enhanced merchandising strategies and product differentiation, are anticipated to benefit Delta. This may position the airline ahead of legacy peers in capturing market share and profit growth.
- Long-term strategic focus, including new forecasts and targets extending through 2026 and beyond, suggests Delta is well-placed for steady profitability and attractive shareholder returns.
- Some analysts remain cautious, emphasizing that while recent results are strong, the observed domestic inflection may not be sustained industry wide and could prove temporary for Delta.
- There is an acknowledgment that significant upside is already factored into current valuations, which limits the impact of recent guidance increases on target prices.
- Ongoing changes within the broader airline industry may introduce execution risk, particularly if economic conditions become less favorable or if competitors accelerate margin recovery.
What's in the News
- The FAA lifted flight restrictions related to the recent government shutdown. Airlines, including Delta, warn that it could take several days for normal operations to resume as schedules recover (WSJ).
- A U.S. appeals court has temporarily blocked an order requiring Delta Air Lines and Aeromexico to unwind their joint venture by January 1, which allows the partnership to continue for now (Reuters).
- Major air traffic control staffing shortages recently led to thousands of flight delays and cancellations across the U.S., affecting Delta and other major carriers (Reuters).
- Delta is nearly finished replacing engine units on over 300 Airbus jets to address toxic fume incidents. This move is intended to improve health and safety for passengers and crew (WSJ).
- Delta and Aeromexico filed a legal challenge against a U.S. government order to dissolve their joint venture. They are seeking to preserve cooperation on flights between the U.S. and Mexico (Reuters).
Valuation Changes
- Consensus Analyst Price Target has decreased slightly, moving from $71.75 to $71.60 per share.
- Discount Rate has fallen modestly, from 9.35% to 9.26%.
- Revenue Growth projections have edged down marginally, from 3.37% to 3.36%.
- Net Profit Margin estimate has dipped a little, shifting from 7.30% to 7.29%.
- Future P/E ratio forecast has decreased slightly, from 12.41x to 12.36x.
Disclaimer
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