J.P. Morgan upgraded Delta Air (DAL ) to overweight from neutral.
Analyst Jamie Baker says his upgrade follows a sharp price drop after Delta's quarterly update Monday night. He says fundamentals appear to be as grim as ever, but he can't resist exploiting the market's apparent "surprise" that higher oil prices and diminished demand aren't good for earnings.
Baker says he upgraded based on price alone -- as he's always happy to do when stock values collapse without a corresponding change in fundamentals. As the sector braces for the start of war, with Delta's stock premium extinguished, he thinks the shares ought to be somewhat defense in nature.