Goldman Sachs resumed coverage on Delta Airlines (NYSE:DAL) with a Buy rating and 12-month price target of $40.
Crucially, analyst Catherine O’Brien and team expect corporate and international travel to continue to improve for Delta and outside revenue streams to help pad the bottom line. In particular, the refinery business is noted to be up materially and the loyalty program trending strong.
O’Brien also pointed out that Delta has a stronger balance sheet than peers to help insulate the business if the U.S. does experience an economic downturn.
“DAL shares have performed at the better end of our US Airlines coverage universe this year, buoyed by improvements in international and corporate travel in addition to its relatively stronger balance sheet in light of rising rates.”
Shares of DAL fell 0.99% in premarket trading on Friday after trailing off 3.09% on Thursday.
It has been a mixed week for Delta from analysts this week with Evercore downgrading the airline stock and Deutsche Bank issuing a bull call.