TD Cowen analyst Tom Fitzgerald maintained a Buy rating for Delta Air Lines and raised the price target to $112 from $106. This adjustment reflects a revised outlook on the airline's valuation and follows a broader trend of Wall Street firms recalibrating their expectations for the carrier's stock performance and operational strength. Morgan Stanley analyst Ravi Shanker maintained an Overweight rating for Delta Air Lines and raised the price target to $125 from $115. UBS analyst Atul Maheswari maintained a Buy rating and raised the price target from $107 to $112. Citigroup analyst John Godyn maintained a Buy rating and raised the price target to $110 from $106. JP Morgan analyst Jamie Baker maintained an Overweight rating and raised the price target to $114 from $85. Susquehanna analyst Christopher Stathoulopoulos maintained a Positive rating and raised the price target from $78 to $108.

Rating and Price Action

Wells Fargo analyst Christian Wetherbee maintained an Overweight rating and raised the price target from $75 to $105. Additionally, B of A Securities analyst Andrew Didora maintained a Buy rating and raised the price target from $93 to $100. Goldman Sachs analyst Catherine O'Brien maintained a Buy rating and raised the price target from $80 to $116. BMO Capital analyst Michael Goldie maintained an Outperform rating and raised the price target from $80 to $105. Raymond James analyst Savanthi Syth downgraded Delta Air Lines from Strong Buy to Outperform and raised the price target to $104 from $80.

The revisions by these firms underscore varied confidence levels in Delta Air Lines' market position and future performance.

Berkshire Hathaway's investment in Delta Air Lines has gained $789,421,512.48 since the end of the first quarter, marking a significant win for new CEO Greg Abel. The stake, which consists of 39,809,456 shares, was valued at $2,646,532,634.88 at the close of the first quarter and has since risen to $3,435,954,147.36. This move contrasts with the strategy of Warren Buffett, who historically avoided airline stocks, once calling the sector a "bottomless pit" in 2007 due to its capital-intensive nature and low returns.

Abel's Strategic Shift

Abel's purchase of Delta stock was one of his first major moves after taking over the CEO role. While the exact purchase price remains undisclosed, shares traded between $55.28 and $76.34 during the first quarter. The position ranks as the 13th largest in Berkshire Hathaway's investment portfolio. Buffett had previously invested in major airlines in the 2020s before selling at a loss, making Abel's successful bet a notable departure from past performance.

Delta's Financial Performance

Delta Air Lines has demonstrated strong operational momentum, beating analyst estimates for earnings per share in seven consecutive quarters. The company has also surpassed revenue expectations for over 20 straight quarters, driven by robust demand despite industry challenges such as rising fuel prices linked to Middle East tensions.

Portfolio Valuation and Future Disclosures

The table below details the performance of Berkshire Hathaway's Delta Air Lines holding:

Berkshire Hathaway is scheduled to submit its second-quarter 13F filing by Aug. 14. This document will reveal whether the conglomerate has maintained, increased, or reduced its position in Delta during the quarter, providing further insight into Abel's investment strategy.