Qantas has announced an equity raising of $1.36bn. The proceeds will fund a three-year recovery plan and pay down debt.
The company aims to save accumulative $15bn in underlying costs over the next three years, cutting personnel by -20%.
Credit Suisse considers the recovery plan is sensible but not without risk.
Management expects domestic demand to recover fully in FY22 and international should be slower, with 50% of pre-crisis demand expected in FY22.
Credit Suisse retains an Underperform rating and raises the target to $3.00 from $2.20.
Target price is $3.00.Current Price is $3.81. Difference: ($0.81) – (brackets indicate current price is over target). If QAN meets the Credit Suisse target it will return approximately -27% (excluding dividends, fees and charges – negative figures indicate an expected loss).