FY21 results and related commentary provided UBS with no real insight into timing for the re-opening of the New Zealand border in 2022. Vaccinated travellers from low-risk countries are expected to be the first step as opposed to unrestricted travel bubbles.
The broker lowers operating earnings estimates by -33% for FY22 and -8% for FY23 mainly on lower international passenger volumes and a slower re-opening of NZ borders. Sell rating and NZ$6.65 target unchanged.
Sector: Transportation.
Current Price is $6.69. Target price not assessed.
