Delta Air Lines (DAL) is taking legal action against CrowdStrike (CRWD) and Microsoft (MSFT) to recover damages related to flight disruptions caused by a software glitch. The airline has appointed high-profile attorney David Boies to lead the legal battle, CNBC reported.
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The IT outage resulted in over 7,000 flight cancellations and widespread operational chaos for Delta. The financial loss is estimated to reach between $350 million and $500 million, with over 176,000 refund or reimbursement requests filed.
Moreover, the incident has drawn scrutiny from regulators, with the Department of Transportation launching an investigation into Delta’s adherence to refunds and compensation regulations.
Investor Sentiment Signal for DAL Stock
The sentiment among TipRanks investors is currently Positive. Out of the 748,866 portfolios tracked by TipRanks, 1% hold DAL stock.
In the last 30 days, 2.1% of those holding the stock increased their positions. However, in the past week, about 0.8% decreased their positions. This decrease may be attributed to the recent troubles in Delta’s operations, which could have hurt investors’ confidence to some extent.
Is DAL a Buy or Sell?
DAL stock has received 11 unanimous Buy recommendations for a Strong Buy consensus rating. The analysts’ average price target on Delta stock of $63.07 implies an upside potential of 46.06% from the current levels. Shares of the company have witnessed year-to-date growth of 7.8%.
