Delta Air Lines upgraded to Buy at Stifel Nicolaus; tgt $10 .

dommy

http://news.moneycentral.msn.com ... 0601&id=9966771

Delta Air Lines upgraded to Buy at Stifel Nicolaus; tgt $10 . Stifel Nicolaus upgrades DAL to Buy from Hold and sets target price at $10 saying they believe much has changed, most importantly starting with investor expectations for the degree of RASM deterioration airlines are likely to report through the summer months. Firm believes collective investor expectations have been effectively managed and the likelihood for a material downside RASM surprise in the coming months is far less now than it was in March. The firm says passenger volumes are healthy but airlines are buying load factors at the expense of yields. They believe airlines are hesitant to attempt substantive price increases for fear of turning away critical cash flow now to prepare for likely cash burn periods in 4Q09. They do not know what the economy will look like at year end, and if premium traffic continues to decline at current levels they believe some airlines could face serious liquidity pressures, but they believe DAL is not among those airlines.