- BofA Analyst outlines negative sentiment as a good time to buy airline stocks
- Delta up 3.5% as buyers anticipate the bounce
Market volatility might well be easing; what does this mean? Essentially it means large-cap stocks that suffered sell-offs over the last year or two, are available at low prices. Not in all cases, as some sectors weathered the pandemic better than others. Today, Delta stock is up 3.5% as buyers combat sentiment.
Travel stocks, particularly airlines, were hit the hardest – and whilst that didn’t bode well at the time, investors are gripping recovery hopes as a chance to re-enter the market at a slashed price.
Analysts across Wall Street are all pointing to the travel market as an optimal growth sector for 2022; not necessarily because of organic growth compared to burgeoning sectors like tech, but due to return of travel, and thus the return of pre-pandemic price action (if that exists anymore) within airline stocks.
Read Also: Best Travel Stocks to Buy Now
BofA analyst Andrew Didora upgraded Delta from Neutral to a Buy this morning, on the basis that sell-offs induced by negative sentiment are only temporary. Delta stock rose around 3.5% with the market open as bulls utilize what could be the back-end of travel stock volatility and negative market sentiment.
Didora changed the price target from $46 to $48 – still nearly $4 under the highs seen in February last year as restrictions were lifted – meaning plenty more upside is on the table. Still, investors should trade with caution when it comes to sectors easily affected by media-inflicted worries at a time when a new variant could throw stocks into the red once again.