The first half loss of -$1.03bn was slightly better than UBS expected. As the period was disrupted by border closures the main implication from the numbers relates to liquidity, which has largely remained static since the prior update.
Qantas has indicated it will have achieved a large portion of its cost reduction target by the end of FY21 and UBS suspects only half of the $1.0bn target is currently included in forecasts. UBS retains a Buy rating and $6.20 target.
Sector: Transportation.
Target price is $6.20.Current Price is $5.10. Difference: $1.10 – (brackets indicate current price is over target). If QAN meets the UBS target it will return approximately 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
