Delta Analyst Targets Diverge After Third-Quarter Results

what happened

Delta Air Lines (DAL) shares drew attention on Monday as analysts revised their price targets in different directions after the carrier’s third-quarter report. Stocktwits, citing The Fly, said BMO Capital lifted its target to $105 from $100 and kept an “Outperform” rating. The firm said the quarter broadly matched expectations and that Delta’s fourth-quarter guidance was stronger than anticipated. BMO highlighted the airline’s ability to produce free cash flow and reduce debt even with substantially higher fuel expenses. It also said consensus estimates may be too low for Delta’s unit-revenue prospects in the first quarter of 2027 and across 2027, while noting that visibility remains limited. DAL was down about 1.6% when the report was prepared on Monday.

Argus cut its target to $95 from $105 but retained a “Buy” rating. The firm cited Delta’s third-quarter earnings-per-share shortfall, yet characterized the decline after the results as an opportunity to buy. Potential support could come from lower jet-fuel costs and expansion of the loyalty program, Argus said. The Fly also reported that Seaport Research raised its target to $100 from $95 and kept “Buy,” arguing that fuel expenses obscured otherwise solid results and that the release reinforced confidence in Delta’s longer-term objectives. Susquehanna reduced its target to $95 from $100 while maintaining “Positive.” Although the results missed consensus, they exceeded Susquehanna’s forecast, helped by a slightly stronger operating margin and fuel costs that were marginally below its expectations. Separately, Delta postponed the start of nonstop Atlanta–Riyadh flights until March 2027 because of changing regional developments. The airline said customer and employee safety would remain central to its operating decisions, and reiterated its long-term commitment to Saudi Arabia. On Stocktwits, retail sentiment stayed “extremely bullish,” with message volume at “high” levels over the prior 24 hours; DAL has gained more than 15% year to date.

why it matters

The divergent targets underscore disagreement over how fuel expenses, earnings execution and cash generation will shape Delta’s outlook. The delayed Riyadh launch adds a regional-operating consideration alongside the company’s financial results. Investors are also weighing Delta’s balance sheet, the potential effect of its loyalty business and its plan to repurchase $1 billion of stock by 2028, all of which were cited in the analyst commentary.

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