Despite signs of consumer weakness in many other sectors, management considers the current demand environment is healthy. First half pre-tax profit was slightly below Credit Suisse estimates.
Qantas has announced a $305m buyback and a $0.12 interim dividend, both above expectations. The broker maintains a Neutral rating and reduces the target to $6.20 from $6.70.
Sector: Transportation.
Target price is $6.20.Current Price is $5.76. Difference: $0.44 – (brackets indicate current price is over target). If QAN meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
