CFRA upgrades Delta Air Lines to Buy and raises target to $100

what happened

Analyst Alex Fasciano at CFRA raised his rating on Delta Air Lines to Buy from Hold, according to Seeking Alpha. He expects the resolved outage tied to the Trainer system to improve crack spread management.

Fasciano sees Delta's fourth-quarter results, due in January, as a possible catalyst for higher Street estimates, given signs that fuel costs are easing. CFRA's 2026 forecast still reflects elevated fuel costs quarter to date, while 2027 assumes a gradual fuel recovery. He noted that premium cabin, loyalty and other revenue now make up 61% of total revenue, a structurally improved mix.

CFRA also sees limited price competition because industry capacity is constrained, which it expects to support unit revenue into the first half of 2027. It raised the 12-month price target by $11 to $100, applying a 13x multiple to its 2027 EPS estimate. Delta shares were up 0.3% at $86.79 in Friday afternoon trading.

why it matters

For markets this is one brokerage's view rather than a sector-wide shift, but it points to expectations that constrained capacity and lower fuel costs will support airline margins. Delta's January report will show how far those expectations hold.

tags

instruments