UBS raised its Delta Air Lines (NYSE: DAL) price target to $98 from $95.
The firm maintained its "buy" rating on the stock.
A potential Middle East conflict resolution drives this positive outlook.
Lower fuel costs from this resolution could catalyze airline stocks.
The analyst projects approximately 50% earnings per share growth for several airlines in 2027.
This growth expectation builds as the market prices in significant earnings expansion.
Progressing diplomatic talks between the U.S. and Iran have lowered oil prices.
Oil prices remain a major variable for airline profitability.