Macquarie suspects Qantas could experience a faster recovery domestically as borders continue to re-open and pent-up demand for movement around the country occurs.
An international recovery, while more predicated on a vaccine/treatment for the coronavirus, could pull forecasts forward if travel bubbles proliferate.
Macquarie revises FY21 estimates up by 7% while lowering FY22 by -17%, the latter largely because of lower average seat kilometre assumptions.
The broker retains an Outperform rating and raises the target to $4.95 from $4.25.
Sector: Transportation.
Target price is $4.95.Current Price is $4.21. Difference: $0.74 – (brackets indicate current price is over target). If QAN meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
