Second downgrade in two months takes Air New Zealand to Underperform from Outperform at Credit Suisse. Analysts have raised their forecasts on currency forecast changes, a lower oil price and better than anticipated passenger yields.
Credit Suisse believes Air NZ is currently enjoying a very favourable trading environment, which won’t be sustainable over the longer term though.
The recommendation downgrade follows an 88% share price appreciation over the past few months. Enough said.
The broker believes the company is likely to go through a “capex holiday” until 2010.
Current Price is $1.82. Target price not assessed.