"The message from management (and reaffirmed by its financial metrics) is that Delta is delivering on its goals which are a balanced approach to managing costs, applying discipline to capital allocations, and pursuing shareholder-friendly initiatives," analysts said after attending the airline's Investor Day yesterday in New York.
"Given the recent decrease in the price of fuel and better-than-expected revenue trends, we are raising our December Q 2014 EPS estimate to 72 cents (vs. consensus of 69 cents) from 63 cents and subsequently our FY 2014 EPS forecast to $3.30 (vs.consensus of $3.26) from $3.20," analysts added.
Similarly, Credit Suisse raised its price target on the stock to $63 from $56 today, maintaining an "outperform" rating, echoing that management reassured investors on pricing and capacity discipline in a lower fuel environment.
Notably, Delta led a rally in the U.S. industry yesterday as the company projected a $1.7 billion fuel benefit even after accounting for hedging losses, Bloomberg reported.
The Bloomberg U.S. Airlines Index closed up 2.6% yesterday, the sixth gain in seven trading sessions, on a day when crude oil fell to its lowest settlement price since July 2009.