Cowen and Company Believes Sell-Off is Unwarranted for Delta Air Lines

In a report published Wednesday, Cowen and Company analyst Helane Becker reiterated an Outperform rating and $31.00 price target on Delta Air Lines (NYSE: DAL).

In the report, Cowen and Company noted, “We are taking this opportunity to reiterate our Outperform rating on the shares of Delta Air Lines and would be a buyer on the current weakness. We believe the stock remains a compelling investment as Delta is currently trading at 8.5x our 2014 EPS estimate, below United Continental at 9.5x. Delta is in the middle of a $500MM share repurchase program, has upside to its modest quarterly dividend of $0.06/share, and is targeting net debt of $7 Bn.”

Delta Air Lines closed on Tuesday at $28.05.