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Delta Air Lines Inc. is a well-known name across the United States and is one of the largest global airlines. The company has garnered a positive response from brokers, with most analysts seem to be bulish  the stock, following the release of its Q1 2023 earnings.

In Q1, Delta posted a net loss of US$363 million, or 57 cents per share, an improvement from the year-ago period, when the company reported a net loss of US$940 million or $1.48 per share as travel demand was still recovering.

Adjusting for one-offs, the company reported a net profilt of $163 million, or 25 cents per share, up from a loss of $748 million, or $1.23 per share, in the year-ago quarter. Delta said it loss in Q1 was partly because of a new four-year pilot contract that promises 34% pay rise.

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As per analysts on EODHD/Others, Delta continues to be in the ‘Buy’ zone after the release of its financial reports. As per data available on EODHD/Others, DAL stock price closed at US$ 34.33 on April 21, 2023. This marked YTD returns of 5.27%.

The stock hit a 52-week high of US$ 46.27 on April 21, 2022.

Delta Air Lines Inc. target price

Evercore ISI maintained a target price of US$ 47 on DAL, indicating an upside potential of nearly 37% over its previous closing price of US$ 34.33.

The consensus target price on the stock is US$ 51.56, which is nearly 49% higher than DAL’s previous closing price. As per EODHD/Others, eight analysts gave the stock a 'Strong buy' rating, while twelve others gave it a 'Buy' rating. None of the analysts, however, have given the stock ‘Hold’, ‘Sell’ or ‘Strong Sell’ ratings.

© 2023 Krish Capital Pty. Ltd.; Data source: EODHD/Others

Delta’s Guidance for Q2 and FY2023

For the June 2023 quarter, the company expects a total revenue increase of 15% to 17%, while for the full FY23, revenues are expected to jump between 15-20% annually. Additionally, the company expects an operating margin of 14% to 16% for Q2 and between 10-12% for the entire FY23. The company said earnings per share in the June 2023 quarter are expected to be in the range of US$ 2-US$ 2.25 and for FY23, EPS is expected to be between US$ 5-US$ 6.