Delta Air Lines Stock Gains (NYSE:DAL): Price Target Hikes Follow Strong Earnings

Delta Air Lines stock (NYSE:DAL) is experiencing a bullish surge in confidence, with a price target hike from Deutsche Bank following a solid earnings report that markets certainly enjoyed.

The stock has reacted favorably to the news, with analysts pointing to Delta's impressive free cash flow generation and commitment to debt reduction as key drivers.

Deutsche Bank analyst Michael Linenberg increased the firm's price target to $72 from $63, reiterating a “Buy” rating. This upward adjustment signals a belief in Delta's ability to deliver continued financial success.

JPMorgan Chase & Co. also joined in revising projections for Delta, increasing its price target to $85 from $72, assigning an “Overweight” rating to the stock.

Delta's third-quarter 2025 earnings per share (EPS) of $1.71 significantly surpassed the consensus of $1.52, representing a 12.5% earnings surprise. The company's revenue for the quarter reached $16.67 billion, exceeding analyst projections. These figures highlight Delta's capacity to outperform market expectations, bolstering investor confidence.

The airline's strategic emphasis on premium services and diversified revenue streams has played a crucial role in its financial achievements.

Approximately 60% of Delta's adjusted operating revenue is derived from premium cabins, loyalty programs, and other high-margin segments, collectively growing 10% year-over-year.

Premium product revenue alone increased by 9%, indicating strong demand for enhanced travel experiences.

Delta has also demonstrated a commitment to strengthening its financial position. The company generated $1.8 billion in operating cash flow during the third quarter and reduced its adjusted net debt to $15.6 billion, marking a decrease of $3.1 billion from the previous year.

This financial discipline positions Delta favorably for future investments and shareholder returns, including the reinstatement of dividend payments.

Looking ahead, Delta anticipates adjusted earnings between $1.60 and $1.90 per share for the final quarter of 2025, with a midpoint of $1.75, beating the street's estimate of $1.66. The airline projects revenue growth of 2–4% year-over-year, fueled by strong corporate travel demand and improved ticket pricing.

The recent analyst upgrades, coupled with recent earnings suggest a bullish period for Delta Air Lines. The stock ended yesterday 4.29% higher, having early traded 4% higher on the open following the print. As markets digest the data, and what this means for the stock from here, bulls will be happy with Deutsche Bank's latest look.