Analysts Expect This Airline Stock to Soar to Record Highs

By Katie Coburn / October 06, 2017 / www.schaeffersresearch.com / Article Link

Analysts are weighing in on restaurant stock Yum China Holdings Inc (NYSE:YUMC), airline company Delta Air Lines, Inc. (NYSE:DAL), and manufacturing concern Navistar International Corp (NYSE:NAV). Here's a quick roundup of today's bullish brokerage notes on shares of YUMC, DAL, and NAV.

Analyst Expects Record Highs For Yum China Stock

Yum China stock is trading 0.5% lower at $39.82, after the company reported better-than-expected same-store sales and revenue for the third quarter, despite posting earnings that came in below forecasts. As a result, Oppenheimer and Morgan Stanley each raised their price targets to $45.

Not all analysts, however, are convinced YUMC stock will resume its quest for record highs. Three of the seven brokerage firms following the security rate it a lukewarm "hold." The shares hit an all-time high of $42.12 on June 8. The stock had since struggled under the weight of its 40- and 50-day moving averages, but still boasts a year-to-date lead of more than 50%.

Delta Air Lines Stock Flies Higher As Hurricanes Die Down

Another stock flying higher on analyst love is Delta Air Lines stock, last seen trading 1.4% higher at $52.43, after Deutsche Bank boosted its price target onto $63 from $59 -- in uncharted territory. Up 6.4% year-to-date, DAL shares are now pacing for their fourth consecutive close above their 80-day moving average -- a trendline the stock hadn't closed above since August before Monday.

Options traders have been upping their bullish appetite for DAL stock -- one of the best stocks to buy in October -- of late, too. This is evidenced by the security's 10-day call/put volume ratio of 3.00 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- good enough to rank in the 82nd annual percentile. In other words, options players have bought to open three calls for every put in the past two weeks.

Navistar Stock Is Within Reach of Fresh Highs

A third stock on the rise thanks to bullish analyst attention is Navistar International stock. The truck maker is up 1.7% to trade at $44.88, after Jefferies raised its price target to $53 from $47. The brokerage firm cited the company's alliance with Volkswagen -- specifically, plans to launch an electric truck in North America by the end of 2019 -- which it believes could result in a buyout in the future.

NAV shares have been surging on the charts since mid-June, and currently boast a roughly 43% year-to-date gain. The security isn't far from the annual high of $45.47 it hit Wednesday, either. As such, bears are jumping ship. Short interest on the equity has dropped by 9% during the past two reporting periods to just 6.25 million shares.

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