NEW YORK (TheStreet) -- Shares of Delta Air Lines Inc (DAL) were down 4.76% to $40.86 in afternoon trading Monday, after analysts at Raymond James downgraded the airline to "outperform" from "strong buy" earlier this morning.
The firm also slashed its price target to $54 from $60, reflecting the "lower near term upside."
Analysts at Raymond James said that while the U.S. airline industry is "maintaining capacity discipline," the recovery in pricing "heading into the seasonally stronger summer months" is expected to be muted.
The firm added that it expects softer-than-anticipated domestic economic growth.
In addition, Raymond James downgraded American Airlines Group (AAL) to "market perform" from "outperform."
Also, Delta Air Lines was approached about investing in Skymark Airlines (SKALF) to help revive it from bankruptcy, Reuters reports.
Skymark is a Japanese budget airline carrier.
Atlanta, Ga.-based Delta Air Lines provides scheduled air transportation for passengers and cargo through its route network, centered around the hub system it operates at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita.
Separately, TheStreet Ratings team rates DELTA AIR LINES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DELTA AIR LINES INC (DAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."