Credit Suisse observes Alliance Aviation enters FY21 with a fully utilised fleet and no indication that the trends from the fourth quarter are moderating. FIFO markets are strong and end commodity exposures favourable.
The result reveals pre-tax profit of $40.7m, consistent with guidance. Credit Suisse reduces dividend estimates in outer years to reflect a sensible approach to capital management in light of the recent raising. Outperform retained. Target rises to $4.05 from $3.75.
Target price is $4.05.Current Price is $3.57. Difference: $0.48 – (brackets indicate current price is over target). If AQZ meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).