In an around -$600m miss versus consensus expectations, Qantas has guided to a 1H FY22 earnings (EBITDA) loss of between -$250m-$300m. Credit Suisse notes this is due to staff costs in preparation for the reopening recovery.
However, 1H net debt is better than the analyst’s forecast due to strong flight bookings, particularly for international.
The broker raises its target price to $4.60 from $4.10 on a change of valuation method and maintains its Underperform rating.
Target price is $4.60.Current Price is $4.84. Difference: ($0.24) – (brackets indicate current price is over target). If QAN meets the Credit Suisse target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).