Qantas Airways Limited: Buy Rating Affirmed Amid Strategic Moves and Cost Savings

Goldman Sachs analyst Niraj Shah has maintained their bullish stance on QUBSF stock, giving a Buy rating today.

Niraj Shah has given his Buy rating due to a combination of factors influencing Qantas Airways Limited. Despite facing temporary challenges such as losses from Jetstar Asia and reduced capacity in Group International due to industrial actions, Shah sees these as short-term setbacks. The decision to exit the Jetstar Asia business is viewed positively, as it is expected to reduce renewal capital expenditures and demonstrate management’s strategic discipline.
Moreover, Shah highlights the favorable impact of lower fuel prices, which are expected to provide significant cost savings. Although Qantas is substantially hedged, the anticipated improvement in fuel costs is projected to contribute positively to the company’s financial performance. Additionally, strong underlying demand and capacity discipline, along with unchanged unit revenue guidance, support the expectation of robust performance in the coming fiscal year. These factors collectively justify the Buy rating, with an anticipated upside in stock value.

In another report released today, DBS also maintained a Buy rating on the stock with a A$10.50 price target.