NEW YORK (TheStreet) -- Shares of Delta Air Lines (DAL) - Get Report were up in mid-afternoon trading on Friday as Credit Suisse said the Atlanta-based airline operator remains a "top pick" for the firm.
The firm said that competitors Southwest (LUV) and Alaska Air (ALK) were also top picks.
Credit Suisse noted that overall sentiment toward the airline industry has improved in the current quarter, but airline stocks have still "languished."
"This is a function of ongoing skepticism on fundamentals, namely 2017 industry capacity growth... and the level of quarter-over-quarter improvement in fourth quarter unit revenue guides," the firm added.
But investors have been "encouraged" by comments from carriers about a stabilizing domestic unit revenue environment, Credit Suisse said.
"We think Delta will see a mean reversion trade, given underperformance relative to United Continental (UAL) and American Airlines (AAL), now that the worst is (hopefully) behind on unit revenues and now that a December 15 investor day... offers a catalyst," Credit Suisse said.
Separately, 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.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: DAL