Hudson Securities Has Buy On Delta Air Lines (DAL)

Hudson Securities is out with a research report on shares of Delta Air Lines DAL with a Buy rating and a $20 price target. In a note to clients, Hudson writes, "For now, modest downside to Street estimates exists in 1Q, less so in 2Q given recent pricing actions by the industry. The current spot price in jet fuel in our DAL model is offset in good part by revenues trending roughly 200 bps ahead of our assumption; netting the two gets us to a loss of $0.15/share in 1Q11 (vs consensus -$0.12 & our published EPS of $0.05), and $1.50 (or a 6% operating margin) for the year. We assume the Middle East crisis is resolved in the near future."