rbs australia rates the stock as buy

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VBA - RBS Australia rates the stock as Buy
BY BROKER NEWS - 04/05/2010

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? VBA - VIRGIN BLUE HOLDINGS LIMITED



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Target $0.81 (was $0.82). The broker notes the proposed alliance with Air New Zealand is expected to generate at least $15m in synergies, so the deal is seen as a positive.

At the same time management has lowered earnings expectations for FY10 and the broker sees this as weighing on the stock. Post some changes to its numbers the broker has trimmed its price target.

Buy rating retained.

Sector: Transportation.

Target price is $0.81.Current Price is $0.55. Difference: $0.26 - (brackets indicate current price is over target). If VBA meets the RBS Australia target it will return approximately 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).


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