Qantas Airways Limited: Strong Financial Performance and Strategic Initiatives Drive Buy Rating with AUD10.5 Target Price

Tabitha Foo, an analyst from DBS, maintained the Buy rating on Qantas Airways Limited (QUBSF – Research Report). The associated price target is A$10.50.

Tabitha Foo’s rating is based on Qantas Airways Limited’s strong financial performance and strategic initiatives. The company reported an adjusted EPS of AUD0.63, surpassing consensus estimates by 2.4%, driven by robust domestic yields and effective cost management. Revenue increased by 9% year-over-year to AUD12.1 billion, supported by capacity expansion and strength in premium cabins, which helped counteract international yield pressures.
Qantas’s strategic initiatives, such as Project Sunrise, aim to enhance its premium market position with ultra-long-haul routes, providing a competitive edge. Despite potential risks from fuel price volatility and regulatory challenges, Qantas’s cost transformation efforts and loyalty program are expected to bolster earnings growth. The resumption of shareholder returns, along with stable credit metrics and strong free cash flow, further supports the Buy rating, with a target price of AUD10.5, reflecting a favorable risk-to-reward profile compared to regional peers.

According to TipRanks, Foo is a 4-star analyst with an average return of 14.4% and a 64.38% success rate. Foo covers the Industrials sector, focusing on stocks such as Delta Air Lines, AIR France KLM, and United Airlines Holdings.