By Sam Boughedda
Investing.com — Delta Air Lines Inc (NYSE:DAL) shares are up approximately half a percent Tuesday after Berenberg upgraded the company to buy from hold with a price target of $50, up from $48.
Berenberg analysts told investors in a note that "Delta offers a high-quality way to play the US recovery, with shares trading at a discount to history."
Delta's shares are currently priced around the $38.10 mark. Before the start of the pandemic in February 2020, they were trading around the $57 level.
The analysts said they favor U.S. airlines over their European counterparts as "the former offer a better value proposition than the latter." They added that the U.S. airline demand recovery is more advanced and valuations are more compelling relative to history.
"We expect the company to regain its margin premium versus the rest of the sector. Delta's co-branded credit card deal with American Express (NYSE:AXP) will be key to this, offering resilient growth at a high margin."