Delta Air Lines (DAL) Stock: Goldman Sachs Raises Price Target Ahead of Q4 Earnings

TLDR

• Goldman Sachs raised Delta Air Lines price target to $77 from an unspecified previous target while maintaining a Buy rating ahead of Q4 2025 earnings on January 13.
• The firm kept its Q4 2025 EPS estimate at $1.48, below the FactSet consensus of $1.57, citing fuel costs that ended the quarter in line with forecasts.
• Goldman raised its target EV/EBITDAR multiple to 4.8x from 4.4x, reflecting improved travel demand after macroeconomic and geopolitical uncertainty earlier in 2025.
• Delta currently trades at $71.82, just 1% below its 52-week high of $72.85, with a 42% price return over the past six months.
• Multiple analysts have upgraded Delta recently, with Wells Fargo setting a price target of $87 and BMO Capital targeting $80, creating a consensus Buy rating at $75.07.

Delta Air Lines got another vote of confidence from Wall Street as Goldman Sachs bumped up its price target to $77. The airline is trading at $71.82, which puts it within striking distance of its 52-week high of $72.85.

Delta Air Lines, Inc., DAL

The timing matters. Delta reports its fourth-quarter 2025 results on January 13, just one week away. Goldman Sachs is sticking with its Q4 EPS estimate of $1.48, though that sits below the broader analyst consensus of $1.57.

The difference comes down to assumptions. Goldman had already adjusted its revenue outlook back in December 2025 to account for headwinds from the U.S. government shutdown. Fuel costs ended up right where the firm expected them to be.

Looking beyond the upcoming quarter, Goldman kept its fiscal 2026 EPS estimate at $6.60 and its fiscal 2027 estimate at $7.45. But the firm made several tweaks under the hood. They marked down jet fuel price expectations and raised their outlook for non-fuel cost inflation.

They also shaved their 2026 unit revenue forecast slightly. Despite these adjustments, the overall earnings picture remains intact.

Improved Travel Demand Drives Multiple Expansion

The real story behind the price target increase is travel demand. Goldman raised its target EV/EBITDAR multiple to 4.8x from 4.4x. That’s a meaningful jump, though still below the 5.0x multiple the firm used before demand softened in April 2025.

Back then, macroeconomic and geopolitical uncertainty put pressure on air travel. Those concerns have eased. Goldman sees the improving demand environment as justification for moving back toward earlier valuation levels.

Delta’s stock has responded accordingly. The shares have gained 42% over the past six months. At current levels, the stock trades at a P/E ratio of 10.19 and an EV/EBITDA multiple of 7.6x, which looks cheap compared to broader market valuations.

InvestingPro analysis suggests Delta is slightly undervalued. Analysts maintain a strong buy consensus across the board.

Wall Street Lines Up Behind Delta

Goldman Sachs isn’t alone in its optimism. Wells Fargo recently initiated coverage with an Overweight rating and a price target of $87. The firm cited improving market dynamics and stronger earnings potential.

BMO Capital started coverage with an Outperform rating and an $80 price target. TD Cowen raised its target to $77 from $72, maintaining a Buy rating after Delta updated guidance on the financial impact of the government shutdown.

That shutdown hit Delta’s bottom line. The airline reported a $200 million drag on fourth-quarter pre-tax income, which translated to a $0.25 impact on earnings per share.

The consensus among 24 analysts covering the stock breaks down to two Strong Buy ratings and 22 Buy ratings. The average price target sits at $75.07. No analysts currently have Sell ratings on the stock.

Delta’s fundamentals support the bullish sentiment. The company posted a net margin of 7.36% and a return on equity of 23.83% in its most recent report. The balance sheet shows a debt-to-equity ratio of 0.68, with a quick ratio of 0.34 and a current ratio of 0.40.

Institutional investors have been active. Wellington Management Group increased its holdings by 54.8% during the third quarter, now owning 5.8 million shares worth $330 million. Marshall Wace expanded its position by over 16,000%, adding 1.3 million shares valued at $71.7 million.

Insiders have been selling. SVP William C. Carroll sold 14,010 shares in October at $61.25 per share for a total of $858,112. EVP John E. Laughter sold 23,323 shares at $62.33, worth $1.45 million.

Delta’s market cap stands at $46.93 billion. The stock has a 52-week range of $34.74 to $72.85, with a beta of 1.38. Institutional investors and hedge funds own 69.93% of the outstanding shares.

Analysts expect Delta to post $8 EPS for the current fiscal year and the next fiscal year. Revenue for the fourth quarter is projected at $15.8 billion.

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