Qantas has announced a -23% cut to international capacity and a -5% cut to domestic. Guidance has been withdrawn because of the unknowns surrounding coronavirus.
Credit Suisse expects the capacity reductions will remain in place for 2020 and this should limit the revenue decline to low single-digit percentages. Neutral maintained. Target is reduced to $4.30 from $6.50.
Sector: Transportation.
Target price is $4.30.Current Price is $4.04. Difference: $0.26 – (brackets indicate current price is over target). If QAN meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
