virgin wings qantas, page-2

Thanks for the article, distef.

I have some broker updates:

UBS has upgraded VBA from neutral and price target from 60c to 80c. They expected Pre tax profit of $56m, not the actual $74m. On their cals VBA is trading at 7x FY11 eps forecast.

Merrill Lynch maintains a buy and price target of 85c. They had NPAT at -$14m, actual $63m. Someone got it terribly wrong. Interesting thing about the update is that they say the valuation could be conservative depending on the impact of Tiger and macro outlook.

I don't know about you guys but the VBA story continues to get better and I'm glad their hedging book is finally adding value.