NEW YORK (TheStreet) -- Delta Air Lines (DAL) shares are up 0.7% to $43.24 in morning trading on Tuesday after the airline was mentioned in an analyst note this morning picking the top four stocks in the airline industry.
Analysts at Morgan Stanley picked Delta as one of the industry's top four stocks while initiating coverage with an "overweight" rating and $65 price target.
The price target represents a potential 50.3% upside from the stock's current price.
"Delta is one of the more attractive airlines within our coverage universe as it provides investors a very balanced profile between its mid-teens free cash flow yield, billions of dollars in capital returns, a move towards an investment grade balance sheet, and a variablized cost structure," said the firm.
The other top three airlines were United Continental (UAL), Alaska Air Group (ALK) and Spirit Airlines (SAVE).
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, increase in net income and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."