Delta Air Lines downgraded to In-Line from Outperform at Imperial Capital
Imperial Capital analyst Michael Derchin downgraded Delta Air Lines (DAL) to In-Line and lowered his price target for the shares to $53 from $77. Following the company's Q4 update, further declines in fuel prices and recent market volatility, the analyst reduced his valuations and unit revenue expectations "across the board to reflect conservatism." Among his baseline industry assumptions is the expectation for fewer fare increases by low cost carriers due to lower oil prices. Derchin says that considering Delta's near-term unit revenue outlook, "modest" fiscal 2019 guidance, and potential weakness in China, he struggles to find a catalyst for the stock's valuations to re-rate higher.