Citi analysts opened a 30-day Positive Catalyst Watch on Delta Air Lines (NYSE:DAL) as they believe the Buy-rated stock could deliver a “strong performance” in the coming weeks.
They cited the upcoming earnings report that could act as a positive catalyst. The guidance and results “should dispel earlier concerns from elements of the market, that demand looked weaker.”
Delta’s demand trends likely remained strong in Q2 amid the robust recovery in travel demand.
“Across the sector, advanced purchase strength and close in weakness seem much more likely to be an evolution of demand trends, not demand weakness. Delta already seems to have made this point, when management reinstated its cash dividend,” they wrote in a note to clients.
Citi’s price target of $61 suggests an upside potential of over 40%.