Despite a downgrade to guidance at the beginning of the year, Credit Suisse notes Air New Zealand continues to trade near its recent peaks and at a premium to the airline sector.
While this appears somewhat surprising, the broker notes a net dividend yield of 8.5% is likely to underpin the share price in the near term.
Indicators suggest there is softening of booking momentum into FY20 and the broker maintains a Neutral rating. Target rises to NZ$2.70 from NZ$2.60.
Sector: Transportation.
Current Price is $2.59. Target price not assessed.
