First-half results were soft, Macquarie observes. Recently downgraded guidance for FY20 pre-tax profit of $300-350m has been maintained. Revenue was in line with expectations.
The airline is now expecting capacity growth of 1.5-2.5% in FY20, down from 4-5%.
Macquarie maintains an Underperform rating, noting the downside risk from a prolonged outbreak of coronavirus. Target is lowered to NZ$2.20 from NZ$2.40.
Current Price is $2.21. Target price not assessed.