12:12 PM EDT, 07/09/2024 (MT Newswires) -- Delta Air Lines ( DAL ) is expected to set the tone for airline earnings when it reports its Q2 financial results and issues Q3 guidance Thursday, BofA Securities said in a note Tuesday.

"With [Delta Air Lines ( DAL )] shares down -12% since the mid-May peak, there is clearly skittishness around domestic capacity," BofA said, adding that the company's exposure to premium, corporate, and international segments could buffer these challenges.

The investment firm lowered the company's 2024 earnings per share estimate to $6.67 from $6.81, remaining near the upper limit of Delta Air Lines' ( DAL ) $6 to $7 guidance range.

For Q2, BofA raised Delta Air Lines' ( DAL ) EPS estimate to $2.41 from $2.25, in line with Wall Street's forecast of $2.37 and approaching the upper end of Delta's guidance range of $2.20 to $2.50.

After the May investor meetings with the company, BofA noted the focus on debt repayment to reduce risk, a strategy it expects to be reiterated during this week's call, setting Delta Air Lines ( DAL ) apart in the sector, the note said.

BofA reiterated its buy rating on Delta Air Lines ( DAL ) stock with a price target of $55.

Price: 47.15, Change: +0.80, Percent Change: +1.72