NEW YORK (TheStreet) -- Shares of Delta Air Lines (DAL) - Get Report are increasing 1.11% to $33.73 on Tuesday morning alongside other U.S. stocks after two consecutive sessions of declines following Britain's decision to leave the European Union.
Delta stock slumped yesterday and Friday amid concerns about its exposure to the U.K. market.
Stifel said that Delta and Southwest Airlines (LUV) fare better than United Continental (UAL) and American Airlines (AAL), as both of the former have less leverage, Barron's reports.
Delta also has higher margins than United and Southwest and has less exposure to Brexit than American, according to the firm.
Stifel is modeling no year-over-year improvement through 2017 and a 15% drop in passenger revenue per available seat mile (PRASM) on Atlantic routes. This is an absolute worst-case scenario from Brexit, Barron's noted.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on Delta stock.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
The team believes its strengths outweigh the fact that the company shows weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DAL