QAN – Macquarie rates the stock as Outperform

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).

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