Prediction: Delta Air Lines Stock Will Prove Wall Street Right and Hit $100 by 2028
The airline is being stress-tested in very difficult conditions and is demonstrating resilience.
Overview
The Wall Street analyst consensus target price for Delta Air Lines (NYSE: DAL) stock is $108, according to Visible Alpha. It's a target implying 25% upside from the current price of $86. I think this target, and more, is achievable, and the stock is attractive at these levels. Here's why.
Starting with valuations, management expects to generate $3 billion to $4 billion in free cash flow (FCF) in 2026. Taking the midpoint of that and applying a back-of-the-envelope valuation for a mature industrial stock at about a 20x multiple yields a market cap of $70 billion, equivalent to a share price of about $106.
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Originally published at www.fool.com.