{"id":11236,"date":"2026-07-08T19:58:34","date_gmt":"2026-07-08T19:58:34","guid":{"rendered":"https:\/\/www.fintechpulse8.com\/?p=11236"},"modified":"2026-07-08T19:58:34","modified_gmt":"2026-07-08T19:58:34","slug":"raymond-james-makes-surprising-call-on-delta-air-lines","status":"publish","type":"post","link":"https:\/\/www.fintechpulse8.com\/?p=11236","title":{"rendered":"Raymond James makes surprising call on Delta Air Lines"},"content":{"rendered":"

<\/p>\n

Sometimes a stock does so well that Wall Street starts worrying about its price.<\/p>\n

That is roughly where Delta Air Lines (DAL) finds itself this week.<\/p>\n

Financial research firm Raymond James still likes the business, but it thinks the\u00a0near-term gains\u00a0have already been made after a\u00a0significant pump\u00a0in the shares.\u00a0<\/p>\n

As a result, it cut its rating<\/strong> a few days before Delta reports second-quarter earnings.<\/p>\n

For Delta shareholders and anyone tempted to buy the dip, this move is worth considering.\u00a0<\/p>\n

Raymond James is flashing both caution and optimism<\/strong>, and investors need to understand why before making a decision.<\/p>\n

Why Raymond James downgraded Delta Air Lines stock right before earnings<\/h2>\n

Raymond James lowered Delta to outperform<\/strong> from strong buy<\/strong> on Monday, July 7, while raising its price target to $104 from $80<\/strong>, Investing.com reported.<\/p>\n

The two moves look contradictory<\/strong> until you separate the company from the stock price.<\/p>\n

Analyst Savanthi Syth still calls Delta a top pick<\/strong> for long-term investors.\u00a0<\/p>\n

She pointed to structural advantages<\/strong> over rival network carriers, a strong balance sheet<\/strong>, and steady capital returns<\/strong>, TipRanks noted.\u00a0<\/p>\n

What changed was the entry point<\/strong>.<\/p>\n

Delta shares have climbed hard in 2026<\/strong>, and Syth flagged the recent run-up<\/strong> as the main reason for the change.<\/p>\n

She also mentioned the narrower gap<\/strong> between the current price and where she thinks it can go next.<\/p>\n

\n

A Delta Air Lines jet on the tarmac ahead of the airline’s second-quarter earnings report<\/p>\n

Michael Derrer Fuchs &sol; Getty Images<\/p>\n<\/figcaption><\/figure>\n

What the higher $104 price target says about Delta’s value<\/h2>\n

Raising a target while cutting a rating is Raymond James saying Delta can still climb, just not as steeply from here.\u00a0<\/p>\n

According to 24\/7 Wall St, the new<\/strong>$104 target<\/strong> replaces the old $80<\/strong> figure.<\/p>\n

A rating measures how much room is left. A price target measures where the stock could land. Both can move at once.<\/p>\n

Raymond James points to a few things holding Delta up<\/strong>:<\/p>\n

    \n
  • A strong balance sheet and steady debt reduction<\/li>\n
  • A recent 15% dividend increase that rewards shareholders<\/li>\n
  • A renewed push into its third-party aircraft maintenance business<\/li>\n<\/ul>\n

    Delta declared a quarterly dividend of about 21.5 cents per share<\/strong>, roughly 15% above<\/strong> earlier levels, the company shared.<\/p>\n

    How jet fuel and airfare trends shape Delta’s outlook<\/h2>\n

    Delta does not fly in a vacuum, and two industry forces decide this call.<\/p>\n

    Raymond James reduced its jet fuel forecast<\/strong> for the second through fourth quarters, which lowers a major cost for every carrier.\u00a0<\/p>\n

    Related: Delta Air Lines cuts two flights forever, refunds available<\/strong><\/p>\n

    At the same time, demand and pricing across U.S. airlines have stayed firm, GuruFocus noted.<\/p>\n

    Fares back that up. In May, airfares rose 26.7%<\/strong> compared to the previous year, while jet fuel has fallen about 35%<\/strong> from its April highs, The Business Times reported.<\/p>\n

    Cheaper fuel<\/strong>and higher fares at the same<\/strong>time<\/strong> is a setup airlines rarely get. It helps explain why targets across the group have been rising.<\/p>\n

    How Delta Air Lines stock stacks up against its airline peers<\/h2>\n

    Delta is not the only carrier drawing fresh attention before earnings.<\/p>\n

    Bank of America recently placed Delta and United in what it called a rare sweet spot<\/strong>, lifting Delta’s target to $100<\/strong> and United’s to $150<\/strong>.<\/p>\n

    More Airline Stocks:<\/strong><\/p>\n

      \n
    • BofA sees Delta, United entering a rare airline sweet spot<\/strong><\/strong><\/li>\n
    • Morgan Stanley resets American Airlines stock price target amid jet fuel surge<\/strong><\/strong><\/li>\n
    • Another low-cost airline leaves 6 cities, refunds available<\/strong><\/li>\n<\/ul>\n

      Meanwhile, Morgan Stanley raised American Airlines to $24<\/strong> while flagging a slower turnaround.<\/p>\n

      The pattern is consistent. Analysts like the sector, but they are getting choosier about which names still have obvious room for growth left after a strong first half.<\/p>\n

      What Delta investors should watch at second-quarter earnings<\/h2>\n

      According to TipRanks, Delta reports its June-quarter results on the morning of July 10<\/strong>. That report will test whether the recent rally was justified.<\/p>\n

      A few things still need to line up before the bulls are proven right<\/strong>:<\/p>\n

        \n
      • Premium cabin and corporate demand<\/strong> hold through peak summer travel.<\/li>\n
      • Management raises or protects its full-year profit guidance<\/strong>.<\/li>\n
      • Fuel costs<\/strong> stay near the lower end of forecasts.<\/li>\n<\/ul>\n

        If those hold, the higher targets across Wall Street look reasonable.\u00a0<\/p>\n

        If demand softens or capacity grows too fast, the near-term caution Raymond James flagged could prove correct.<\/p>\n

        For long-term holders, the downgrade is closer to a small warning than a stop sign.\u00a0<\/p>\n

        For newer buyers, it is a reminder that price matters as much as the story, and that chasing a stock after a big run rarely offers the same margin of safety.<\/p>\n

        Related: Southwest Airlines leaves rivals flat-footed as bankrupt carrier folds<\/strong><\/p>\n

        #Raymond #James #surprising #call #Delta #Air #Lines<\/p>\n","protected":false},"excerpt":{"rendered":"

        Sometimes a stock does so well that Wall Street starts worrying about its price. That is roughly where Delta Air Lines (DAL) finds itself this week. Financial research firm Raymond… <\/p>\n","protected":false},"author":1,"featured_media":11237,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[246],"tags":[2258,124,2047,704,728,10428,2176],"class_list":["post-11236","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-popular","tag-air","tag-call","tag-delta","tag-james","tag-lines","tag-raymond","tag-surprising"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/11236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11236"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/11236\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/11237"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}