Delta Air Lines: Initiating Buy On Premium Revenue Growth And Resilient Margins

Core Viewpoint - Delta Air Lines, Inc. (NYSE: DAL) is initiated with a Buy rating and a price target of $57, highlighting its position as a premier US network carrier with a global presence and two operating segments: Airline and Refinery [1] Group 1: Company Overview - Delta Air Lines operates with a focus on growing loyalty and Maintenance, Repair, and Overhaul (MRO) programs, which are central to its business model [1] - The company is recognized for its durable business model and intelligent capital allocation, which are key factors in its investment appeal [1] Group 2: Research Methodology - Moretus Research employs a structured and repeatable framework to identify companies with mispriced cash flow potential and structural changes, aiming for asymmetric returns [1] - The research emphasizes rigorous fundamental analysis combined with a judgment-driven process, avoiding noise and overly complex forecasting [1] Group 3: Valuation Approach - Valuation for Delta Air Lines is based on pragmatic, sector-relevant multiples tailored to its business model and capital structure, focusing on comparability and relevance [1] - The research aims to provide professional-grade insights and actionable valuation, raising the standard for independent investment research [1]