UBS Sees 50% Airline EPS Growth Path, Lifts Delta Target to $98

Delta Air Lines got two price-target increases in four days, with UBS projecting a path to 50% earnings-per-share growth by 2027 across several carriers.

UBS raised its Delta target to $98 from $95 on May 26, reiterating a Buy rating. The firm described the EPS trajectory as a multiyear opportunity for airlines with the right cost and demand profile.

Deutsche Bank followed on May 29, raising its Delta target to $90 from $80 while maintaining a Buy. The bank said airlines generating returns on invested capital above their weighted-average cost of capital are in a better position to reduce debt and return cash to shareholders. Those same carriers, Deutsche Bank added, are in "far better shape to weather an industry downturn, whether economically or geopolitically-driven."

The bank singled out a small group of U.S. airlines positioned to demonstrate what it called "durability and resiliency" in earnings and free cash flow during a geopolitically-driven 2026 downturn. The updated targets came as part of a sector "value creation primer" the bank published.

Delta flies passengers and cargo across the U.S. and internationally. The airline has been working to lower its debt load and improve free cash flow generation, factors the analysts cited.

AlphaScala's proprietary Alpha Score gives Delta a 59 out of 100, a Moderate rating. The score reflects the airline's position in an Industrials sector that has faced mixed demand signals from corporate travel and international route profitability.