Delta Air Lines Price Target Cut (NYSE: DAL), Bullish Sentiment Holds Firm

Delta Air Lines stock (NYSE: DAL) was a huge gainer on the tariff pause, with a 23.3% increase on the day a welcome relief to beleaguered holders. Since the start of 2025, Delta's stock price has lost 25.06%, even accounting for yesterday's rally.

Trading at $44.27, bulls may also be pleased to see Morgan Stanley has adjusted its target price on the stock to $88. To get to this level, the firm have brought the PT down from $95, but the potential upside from current price action remains very healthy.

Morgan Stanley maintain their Overweight rating for the airline, and arrives on the heels of Delta's recent announcement, which indicated that while the travel sector sees some slowdown, the situation is not as dire as some might have feared. Delta's own performance trends are merely stalling rather than plummeting, bringing some relief to uneasy investors.

Delta Air Lines, Inc, situated in Atlanta, Georgia, is a major player in the industrials sector, specifically within the airlines industry. The company enjoys a strong presence with operational segments that grasp both domestic and international transport tendencies centered around key hubs across the globe. These include strategic positions in several major cities like Atlanta, New York, Paris, and Tokyo.

With a market cap of approximately $28.6 billion, Delta trades with a trailing P/E ratio of 8.20 and a forward P/E ratio of 6.23. The company boasts a steady dividend rate of $0.60, yielding 1.61% for its shareholders, backed by a payout ratio of 9.38%.

From a revenue standpoint, Delta's total revenue stands at over $61.64 billion, translating into a net income for common shareholders of about $3.46 billion. Institutional confidence is evident, with a vast majority of its stock, approximately 82.82%, held by institutions, portraying a solid bedrock of investor trust.

Whilst Morgan Stanley's price target remains lofty, the broader analyst community are a little more mixed. The consensus PT of $58.16 for Delta's shares supported by 22 analyst opinions is made up from a low mark of $42, and with Morgan Stanley's $88 the high mark.