Delta Air Lines initiated with "underweight" - update

01/14/05 - Prudential Financial

NEW YORK, January 14 (newratings.com) - Analyst Bob McAdoo of Prudential Financial initiates coverage of Delta Air Lines Inc (DAL) with an "underweight" rating. The target price is set to $9.

In a research note published this morning, the analyst mentions that the company aims to generate $5 billion in cost savings per year according to its transformational plan. Delta Air Lines' pilot union has agreed to contractual changes and pay cuts proposed by the company during December, the analyst says. Prudential Financial believes that the company would continue to post losses in the near term.