QAN – Credit Suisse rates the stock as Underperform

After reviewing domestic routes that Rex Airlines is now flying, Credit Suisse believes higher competition is likely to offset part of the benefit of Qantas’ -$1bn cost-cutting. Additionally, the Qantas fleet is ageing and the broker estimates capex will step up to -$3bn annually.

Credit Suisse maintains the Underperform rating and believes the share price doesn’t adequately reflect the risk of further covid disruptions. The target is kept at $4.15.

Sector: Transportation.

 

Target price is $4.15.Current Price is $4.66. Difference: ($0.51) – (brackets indicate current price is over target). If QAN meets the Credit Suisse target it will return approximately -12% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →