Delta Air Lines, Inc. (NYSE:DAL) is one of the best stocks to buy now for good returns.
On June 23, UBS reiterated a Buy rating on Delta Air Lines, Inc. (NYSE:DAL) and increased the price target to $107 from $98
The new price target represents significant upside as the stock is trading at $90 a share. Pixabay/Public Domain The price target hike also comes amid expectations that the second-quarter earnings report will be a positive catalyst for the broader airline sector. UBS expects Delta Air Lines to deliver earnings per share of $1.38.
While the company experienced cost pressures in the second quarter owing to higher energy costs, UBS projects 7% cost per available seat mile as the airline raised pay to address crew scheduling issues. For the third quarter, UBS expects Delta Airlines to achieve earnings per share of $2.51, above the consensus estimate of $1.68 a share. The earnings would incorporate 13.7% revenue per available seat mile on 0.5% available seat mile.