Latest news with #SavanthiSyth
CNBC
23-06-2025
- Business
- CNBC
These international stocks are well liked by analysts, and they pay dividends
International stocks are having a strong year compared to the S & P 500 – and a few of those global names also happen to offer attractive dividends. The broad market S & P 500 is up just 2% in 2025, which pales in comparison to the double-digit surges the benchmark saw in 2023 and 2024. Uncertainty over tariff policy, shakiness on the path of interest rates – and now the U.S.'s involvement in attacks in the Middle East – have sent stocks on a roller-coaster ride. After the S & P 500's big two-year run, it only makes sense that U.S. investors might want to rethink their international exposure to diversify away from overallocations in Big Tech and U.S. names. "If you looked at international last year, it might've underperformed but this year, international has been a star," said Marguerita Cheng, certified financial planner and chief executive officer of Blue Ocean Global Wealth in in Gaithersburg, Maryland. .SPX VEU YTD mountain S & P 500 vs. the Vanguard FTSE All-World ex-US ETF (VEU) in 2025 Indeed, the Vanguard FTSE All-World ex-US ETF (VEU) saw a return of roughly 5.5% in 2024, but it's now up 14% this year. To get some international exposure, particularly for dividend-seeking investors, she has turned to offerings like the First Trust Target Global Dividend Leaders Portfolio. The strategy in this unit investment trust offers a combination of domestic and international equity names, as well as real estate investment trusts. CNBC Pro scanned through the constituents of that portfolio to find international names that offer dividends. Here are a few of the names that are rated buy or overweight by more than 50% of the analysts covering them, and they have upside of more than 20%, based on FactSet consensus price targets. Panamanian airline company Copa Holdings emerged on the list. U.S.-traded shares are up more than 16% in 2025, and the stock pays a dividend yield of about 6.3%. More than 9 out of 10 analysts covering the name deem it a buy or overweight, and consensus price targets call for more than 50% upside, per FactSet. Raymond James analyst Savanthi Syth reiterated a strong buy rating on Copa in May, noting that the airline delivered "Best In Class 1Q25 Results." The company posted earnings of $4.28 per share on revenue of $899.2 million for the period, topping FactSet consensus estimates of $3.94 per share and revenue of $888.6 million. "Copa noted healthy booking trends with no material change in recent weeks, although visibility is limited to 2-3 months out," Syth wrote. "Demand in North America and the Caribbean appears stable, while Mexico and Central America face headwinds from elevated competitive capacity, notably from Avianca." The analyst's price target of $145 calls for upside of more than 41% from Friday's close. Vale , the Brazilian mining company, is another name that's caught Wall Street's attention. The stock is rated buy or overweight by nearly 60% of the analysts covering it. Consensus price targets call for 32% upside from current levels, per FactSet. In April, Bank of America upgraded the stock to buy from neutral, with analyst Caio Ribeiro saying that the "bottom-up story has improved significantly." In part that's due to the conclusion of a railway dispute and a new management team that includes Gustavo Pimenta as CEO and Marcelo Bacci as CFO. "Vale's discounted valuation combined with its improved bottom-up story offer enough margin of safety to accommodate our more cautious iron ore view," Ribiero said, giving the stock a price target of $11.50. That represents nearly 27% upside from Friday's close. U.S.-traded shares of Vale are up 3% in 2025, and the stock pays a dividend yield of 9.1%. Latam Airlines Group of Chile also made the list. Shares are up 37% in 2025, and the stock pays a dividend yield of 2.7%. Consensus price targets call for 23.2% upside from current levels, per FactSet. Morgan Stanley is overweight on the stock, and analyst Jens Speiss said in a June 10 note that traffic for the airline is up 9.8% quarter to date, topping consensus estimates. "Schedules point to capacity increasing ~11% in June, implying capacity growth of ~8-9% for the full quarter, slightly above consensus (+6.8% Y/Y) and [Morgan Stanley's estimates of] (+7.6%)." — CNBC's Nick Wells and Michael Bloom contributed reporting.
Forbes
09-06-2025
- Business
- Forbes
Wealthier Americans Spending Less On Air Travel Amid Trump Tariff Unease
Affluent consumers, seen as the most resilient segment of travelers, are spending significantly less on airline tickets, according to new credit card data, signaling a potential threat for an industry that has banked on premium customers seeing them through these economic turbulent times. Photo illustration of luxury first class. Credit card spending on airline tickets by high-income consumers—those making over $150,000 annually—saw a 7% step down in growth over the 35 days leading up to May 25, according to new data from Consumer Edge, a provider of consumer spending data. Lower-income consumers had already pulled back on airline spending immediately following the announcement of Liberation Day tariffs, April data showed. The May data shows a reversal from March and April, as 'the highest-income group went from the best growth rate to the worst, and if that persists, that could be a problem [for airlines],' Michael Gunther, VP and head of insights at Consumer Edge, told Forbes. This data 'might be a potential forward indicator, because if a weakness is being seen today in the spend, that's probably forward bookings,' Savanthi Syth, an analyst at Raymond James covering the airline sector, told Forbes. On first-quarter earnings calls in April, major U.S. airlines universally acknowledged that the uncertain economy had created significant weakness in demand for 'main cabin,' or economy seats, but they insisted that demand for premium seats remained strong. For first and business class flying, revenue per kilometer (RPK, calculated by multiplying the number of paying passengers by the distance traveled) declined by a massive 26.2% year over year in North America, far outstripping the 4.2% decline seen globally, according to an April market analysis by the International Air Transport Association (IATA), a global trade association representing airlines. This year is shaping up to be a disappointment for America's airline industry. As recently as January, major U.S. airlines were forecasting revenue growth in 2025 compared to 2024. But by mid-April, a shaky economy, exacerbated by President Donald Trump's Liberation Day tariff announcement, compelled Delta, American, Southwest and JetBlue to pull their full-year guidance for 2025, while United Airlines hedged by offering dueling outlooks: one if there is a recession and another if not. Since the start of the year, the Dow Jones U.S. Airlines Index is down 13%. United and Delta stock are down 11% and 13%, respectively, while American and JetBlue shares are down 30% and 33%, respectively, since the beginning of the year. So far, so good, insist the airlines. 'International trends continue to be strong,' American Airlines CFO Devon May said last month at the Wolfe Research Global Transportation & Industrials Conference, adding that the carrier expects positive revenues from that segment in the second quarter. Acknowledging declines in inbound demand from Canada and Europe, Andrew Nocella, United Airlines' chief commercial officer, noted in April that 'U.S.-origin demand has more than compensated for these reductions.' It's unclear if American travelers' appetite for foreign destinations will wane, given the greenback has tumbled 6% year over year, according to the DXY, an index that measures the dollar against a basket of foreign currencies. Compared to this time last year, the dollar is down 5% versus the euro, 6% against the pound sterling and down 8% versus the Japanese yen. That means Americans will pay more on the ground compared to last year when they visit these countries. Strong premium demand in recent years inspired many airlines to overhaul cabin interiors across their fleets to give a bigger presence to premium features like lie-down seats. In their first-quarter earnings reports, airlines continued to bank on premium to compensate for softening demand for 'main cabin,' or coach seats. For example, Delta Air Lines president Glen Hauenstein told investors in April that 'in a recessionary climate, premium demand has shown greater resilience compared to main cabin demand.' This new data from Consumer Edge may expose a chink in that armor. 'A lot of international flying is already bought for the summer, right?' Syth told Forbes. 'But what happens after the summer? And so it's interesting—this is kind of the first data point for that higher-income household that I've heard as seeing softening.' The hotel industry is also being impacted by lower consumer confidence. Last week, CoStar and Tourism Economics downgraded their joint U.S. hotel forecast for 2025, now projecting only 1% growth in revenue per available room (RevPAR), down from 1.8%, citing cooling demand and increased risk factors such as weaker leisure and corporate travel. Trump's Tariffs Sent U.S. Airline Bookings Into A Tailspin, New Data Show (Forbes)
Business Mayor
22-04-2025
- Business
- Business Mayor
Airlines expected to cut 2025 outlooks as travel demand falters
A Boeing 767-332(ER) from Delta Air Lines takes off from Barcelona El Prat Airport in Barcelona on Oct. 8, 2024. Joan Valls | Nurphoto | Getty Images Waning travel from Canada. Signs of weaker demand across the Atlantic. Mass government layoffs. Tariffs. Consumers pulling back on travel bookings. The worst stock market swoon since 2020. All are signs of concerns for the airline industry. U.S. airlines will likely cut their 2025 outlooks when they report earnings starting this week, analysts say, pointing to cracks in demand for travel, which customers had prioritized even through years of inflation. 'Clearly, things are softer than they were in January,' Raymond James analyst Savanthi Syth told CNBC. Delta Air Lines last month cut its first-quarter forecast, citing weaker-than-expected corporate and leisure bookings. American Airlines and Southwest Airlines also trimmed their outlooks for the first half of the year. Since then, airline stocks have tumbled further, as concerns have grown about weaker demand amid President Donald Trump's policies, most recently, new globe-spanning tariffs of no less than 10%. 'The level of sell-off is worse than the reality right now, but it doesn't necessarily mean it won't be the reality six months from now,' Syth said. Stock chart icon NYSE Arca Airline Index and S&P 500 Wall Street analysts have slashed their price targets and downgraded their ratings on U.S. airlines, even Delta, the most profitable of the U.S. carriers. Like its main rival United Airlines , Delta has said high-income consumers who are willing to shell out more for roomier seats have been a boon to its bottom line in recent years. Read More Share a tip on a brilliant winter activity trip However, they're not expecting anything like the pandemic in 2020, when countries closed their borders and air travel demand essentially dried up overnight. It was still the industry's worst-ever crisis. Demand hasn't disappeared this time, but instead is showing signs of strain that other industries have also seen. Delta will be the first of the U.S. airlines to report quarterly results before the market opens on Wednesday. Airline stocks have tumbled this year. Delta has plummeted more than 38%, American has fallen over 45% and United has dropped more than 40% so far in 2025. The turn in sentiment is stark for the travel industry, which has enjoyed strong demand, particularly for international destinations, since the end of the pandemic, as consumers prioritized experiences like weekslong trips through Japan and jaunts to Portugal over buying goods. Signs of lower international demand, in addition to weaker travel from Canada, are emerging in U.S.-Europe bookings. Bookings between the U.S. and Europe for June through August are down about 13% over last year as of March 31, according to aviation data firm Cirium, though it cautioned that the figures come from online travel agencies and not direct bookings on airline sites. Still, some analysts are concerned. 'We expect a world of slower growth, higher inflation, and a more isolationist U.S. to significantly disrupt the competitive environment for airlines,' TD Cowen wrote on Friday. 'We are concerned that the new economic paradigm causes another structural leg down in corporate travel while the negative wealth effect further dampens consumption, especially by Baby Boomers.' The Bank of America Institute wrote last week that it 'could be that the recent drop in consumer confidence is translating into people hesitating to book trips, or considering paring them back,' though it added that 'bad weather and a late Easter this year are also likely playing a part.' Airline executives have said that government travel, which accounts for just a few percentage points of their business but millions of dollars in revenue, has dried up during the mass layoffs and other cost cuts. They'll face questions on earnings calls this month about side effects, such as job cuts at companies like consulting giant Deloitte. Another question will be how resilient premium travel demand is. Syth said the front of the airplane will likely still be full, but that airlines could stimulate demand, if needed, by offering attractive point redemptions for frequent flyers. 'The cabins will be full, but how good will the yields be?' she asked.
Business Insider
21-04-2025
- Business
- Business Insider
Delta Air Lines (DAL) Expands Its Reach into South America
Delta Air Lines (DAL) has announced a major step forward in its global expansion strategy, focusing on new routes and partnerships across South America. This move is a step toward addressing the softness in the domestic market that the company has experienced, while tapping into the resilience of international travel, a segment growing at twice the rate of the company's overall revenue growth. Investors will be keenly watching to see if this can help turn the stock's fortunes around, as it has declined by over 32% so far this year. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. New Routes Bring Strategic Partnerships in the Region Delta's expansion includes additional routes to key South American destinations, with a focus on connecting major U.S. cities to bustling hubs like São Paulo, Buenos Aires, and Santiago. These added flight options aim to make travel more convenient for business professionals, tourists, and families alike. The benefit is clear for passengers—more flights mean greater flexibility, better connections, and increased opportunities to explore some of the world's most vibrant cities. Strengthening its presence further, Delta has solidified partnerships with regional carriers like LATAM Airlines. This collaboration provides seamless connectivity to smaller markets within South America, complementing Delta's expanded route network. For travelers, this means easier access to destinations previously only reached with multiple connections, saving time and offering a smoother travel experience. Delta is also investing in increased capacity to meet the growing demand for flights to South America. By utilizing their modern fleet effectively, the airline can remain competitive with other global brands. Navigating Operational Challenges Operational challenges can arise with any expansion, such as increased flight frequency, potentially leading to congestion or delays, especially at a major hub like Atlanta. However, Delta consistently leads in on-time performance and flight completion rates, indicating strong operational management. Further, despite growth in capacity and frequency, Delta has maintained industry-leading operational performance and managed to keep non-fuel unit cost growth low. This suggests that efficiency gains and careful scheduling can offset some negative impacts of increased frequency. Is Delta a Buy? Analysts following the company have been constructive on its prospects, despite several adjusting price targets downward. For instance, Raymond James analyst Savanthi Syth reduced the price target for Delta from $62 to $60, while maintaining a Strong Buy rating, noting Delta plans to cap second-half 2025 capacity growth to protect margins and cash flow, despite a no-growth environment. She further observed that Delta's unique structural advantages support its margin advantage over legacy peers. Similarly, Morgan Stanley's Ravi Shanker adjusted his price target from $95 to $88 while keeping an Overweight rating on Delta's shares. Despite the market's anticipation of a significant downturn in airline stocks, Ravi has indicated that Delta's status updates show that trends are merely stalling, contrary to more severe expectations. The firm is viewed as a high-quality, long-term investment despite prevailing uncertainties in the outlook. He maintains investor confidence in Delta as a potential long-term winner in the industry. The average price target for DAL stock is $60.00, representing a potential upside of 46.88% from current levels.
Yahoo
11-04-2025
- Business
- Yahoo
Delta Air Lines price target lowered to $60 from $62 at Raymond James
Raymond James analyst Savanthi Syth lowered the firm's price target on Delta Air Lines (DAL) to $60 from $62 and keeps a Strong Buy rating on the shares. Delta's plans to flatten second half 2025 capacity growth as it moves to protect margin and cash flow in a no-growth environment while maintaining low-single digit year over year CASM-Ex was well-received, offsetting the midpoint of Q2 EPS guidance that was below consensus, the analyst tells investors in a research note. The firm continues to see unique structural advantages at Delta vs. legacy peers supporting a margin advantage. Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on DAL: Disclaimer & DisclosureReport an Issue Delta Air Lines: Resilience and Strategic Positioning Amid Market Volatility DAL, UAL, AAL: Airline Stocks Skyrocket on Tariff Relief Delta Air Lines Reports Solid March Quarter Results Delta Air Lines price target lowered to $88 from $95 at Morgan Stanley Delta Air Lines says hopes 'sanity will prevail' on tariffs Sign in to access your portfolio
