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BofA Bullish On Delta Airlines

Published 08/01/2022, 02:04 am
© Reuters.
DAL
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By Sam Boughedda

Investing.com — Shares of Delta Air Lines Inc (NYSE:DAL) are up around 2.3% Friday after BofA analyst Andrew Didora upgraded the stock to buy from neutral. 

Didora upped his share price target by $2, to $48 per share.

The upgrade comes a day after the company said it expects 200 daily cancellations on Thursday and Friday due to severe weather and the Omicron variant causing staff shortages. 

"The challenges this winter weather will bring to these major markets, plus the continued impact from the omicron variant, are expected to drive approximately 200 daily cancellations Thursday and Friday between Delta and Delta Connection out of more than 4,000 daily departures across our system," Delta said Thursday.

However, the analyst thinks Delta Airlines' current poor sentiment could be a good time to buy. 

"Times of poor sentiment are usually good times to buy airline stocks," stated Didora.

He went on to say he prefers Delta over American Airlines (NASDAQ:AAL) and United Airlines due to the stronger balance sheet, cheaper valuation and more capacity discipline.

 

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