VAH – Credit Suisse rates the stock as Downgrade to Underperform from Neutral

FY19 results were weaker than expected. Credit Suisse notes the aggressive initiatives to cut costs amid reviews of fleet capacity and network.

While the initiatives are likely to deliver a sustainable improvement, the broker suggests this may take 2-3 years.

Credit Suisse believes the new CEO is taking the right action and downgrades to Underperform from Neutral on valuation grounds. Target is reduced to $0.10 from $0.18.

Sector: Transportation.

Target price is $0.10.Current Price is $0.16. Difference: ($0.06) – (brackets indicate current price is over target). If VAH meets the Credit Suisse target it will return approximately -60% (excluding dividends, fees and charges – negative figures indicate an expected loss).


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