good share price Never Done Cos of money printing. This company...

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BraveNewWorld

1,224 Posts.

179

07/10/20

14:14

Post #: 47912647
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Originally posted by NeverDone: ↑

Hi all,

Good share price movement today, which is partly explained by Goldman Sachs upgrade (from hold to buy). I am citing from their report.

Risks to Australian domestic reopening diminishing; government actions suggest timing could occur pre-Christmas
We have become more confident that a re-opening of Australian domestic aviation markets will occur pre-Christmas given: (i) the alignment of the rates of community transmission across the Australia states; (ii) recent moves to relax border restrictions; and (iii) the introduction of tourism stimulus, all ahead of the critical summer holiday period. We expect a staggered approach to the re-opening of the Australian states starting with NSW, and the formation of a limited trans-Tasman bubble from December.

NZ experience suggests pent-up demand will deliver a solid recovery profile
In order to model the magnitude of the recovery, we draw on the NZ domestic market experience which has shown a solid recovery in domestic activity to c.70% of pre-covid levels, led by (i) solid elastic demand for leisure travel; (ii) supplemented by a 65-70% recovery in corporate travel; (iii) positive reception to sale events; (iv) facilitating good load factors and RASK growth.

Prefer Australian domestic exposure; Risk/return on airlines has improved; Buy QAN.AX, SYD.AX
Our overarching view is a preference for Australian exposed stocks, given: (i) the Australian domestic recovery remains in its infancy; and (ii) the stocks are better structured to profitably leverage a domestic market recovery. Further, with our increased confidence in the near term resumption of domestic activity in Australia, we now believe the risk/return balance for airlines is more attractive. We revise our estimates and 12-month target prices across our coverage, we upgrade QAN to Buy from Neutral (TP A$5.28, +30% upside) and reiterate Buy on SYD.AX (TP A$7.02, +19% upside). We remain Sell rated on AIR.NZ (TP NZ$1.34, -4% downside).

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good share price Never Done Cos of money printing.

This company is technically bankrupt.

AJ giving it back. You represent everything that Is wrong with our country.

QAN Price at posting: $4.33 Sentiment: Sell Disclosure: Not Held
2 Upvote

0 Great analysis

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