Where is Delta Air Lines (DAL) Headed According to the Street?

Delta Air Lines, Inc. (NYSE:DAL) is one of the most undervalued travel stocks to buy according to hedge funds. Reuters reported on January 27 that Delta Air Lines, Inc. (NYSE:DAL) announced plans to purchase 31 Airbus widebody jets, supporting its long-term goal to modernize its international fleet and support future growth with a focus on demand from high-income and corporate travelers. The order includes 15 A350-900s and 16 A330-900s, and deliveries are expected to begin in 2029.

Reuters further reported that the new Airbus jets would be employed for medium- and long-haul flights, including recently announced or launched services to Hong Kong, Taipei, Melbourne, and Riyadh.

In another development, Bank of America Securities reaffirmed a Buy rating on Delta Air Lines, Inc. (NYSE:DAL) and set a price target of $80.00 on January 16. Following a detailed discussion with the company’s CFO, the firm stated that the company stands out as a clear leader in the airline sector, supported by encouraging factors such as modest leverage, strong cash generation, emphasis on premium revenue, and diversified income streams, such as loyalty and maintenance operations. Bank of America Securities sees the company’s 2026 earnings guidance as deliberately cautious, given macroeconomic uncertainty, adding that the underlying demand remains healthy.

Delta Air Lines, Inc. (NYSE:DAL) provides scheduled air transportation services for cargo and passengers. The company’s operations are divided into Airline and Refinery segments, with the Airline segment offering scheduled air transportation for passengers and cargo, and the Refinery segment providing jet fuel to the airline segment.

While we acknowledge the potential of DAL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.