Zacks Investment Research downgraded shares of Delta Air Lines Inc. (DAL) (DAL) from OUTPERFORM to NEUTRAL on February 13, 2014, with a target price of $33.00.
We are downgrading our recommendation on Delta Air Lines to Neutral from Outperform. Rise in wages and salaries of contract workers are expected to increase the non-fuel expenses of the company, thus affecting its bottom line. Further, the formation of American Airlines Group and winning of airport slots by Southwest will increase competition for Delta. However, we expect Delta to perform impressively on various strategic measures such as route launches, introduction of ancillary products, strong customer service and revamping of fleet structure. Further, the acquisition of Virgin Atlantic will strengthen Delta's trans-Atlantic operations. In addition, management's balanced capital deployment plan is expected to enhance shareholder value going forward.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Delta Air Lines Inc. (DAL) (DAL),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment