Analysts predict Delta Air Lines Inc's stock could rise to the mid-$60s per share, contingent on meeting a 2019 earnings target of $6 to $7 per share, surpassing the $5.65 recorded in 2018, according to a Barron’s analysis.
Ross Margolies, head of Stelliam Investment Management, highlighted Delta's leadership in fare segmentation, international alliances, and technology, citing its maintenance and repair capabilities as key strengths.
The report noted speculation about Warren Buffett’s Berkshire Hathaway Inc exploring airline acquisitions, given its 10% holdings in all four major U.S. carriers—Delta, Southwest Airlines Co, United Continental Holdings Inc, and American Airlines Group Inc.
Recent filings revealed Berkshire increased its Delta stake by 5.4 million shares, now holding 70.9 million shares or 10.4% of the airline. The article noted that 'Buffett appears to be most enamored' with Delta, though no immediate response was received from Delta officials.
Reporting by Scott DiSavino; Editing by Marguerita Choy
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