On Tuesday, TD (TSX:TD) Cowen expressed optimism for Delta Air Lines' (NYSE:DAL) future financial performance by increasing the stock's price target from $59.00 to $75.00. The firm maintained a Buy rating on the airline's shares. The adjustment comes ahead of Delta's investor day scheduled for November 20, 2024, in New York, where the company is expected to provide updated guidance for FY25 and unveil long-term targets.
The analyst from TD Cowen highlighted several areas of focus for the upcoming investor day. These include Delta's hub and partner strategy, efforts to cultivate the customer lifecycle, and potential margin benefits from fleet renewal. Additionally, the airline's technology operations, cost efficiency levers, and capital allocation strategies are set to be discussed.
Delta Air Lines is also anticipated to shed light on how it plans to expand its loyalty and co-brand card programs, as well as other non-ticket revenue opportunities. These initiatives are part of the company's strategy to diversify its income and enhance profitability.
The airline industry has been paying close attention to Delta's moves, especially as airlines continue to recover from the impact of the global pandemic. With the industry facing various challenges, including fluctuating fuel prices and changing travel patterns, Delta's approach to its long-term financial targets is of significant interest to investors and industry observers alike.
The investor day event is expected to provide investors with a clearer picture of Delta's strategic direction and financial ambitions for the coming years. The raised price target by TD Cowen suggests confidence in Delta's ability to execute its plans and capitalize on the identified revenue opportunities.
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