0137 GMT - Virgin Australia gets a new outperform rating at RBC, albeit with one significant caveat. Initiating coverage of the stock, analyst Owen Birrell tells clients in a note that the ASX-listed airline is likely to remain focused on margin improvement and shareholder returns as it operates in what he calls a rational two-player market. As such, the stock looks undervalued to Birrell. However, he warns investors to be aware of the stock's low liquidity. He says this could represent heightened risk if market conditions deteriorate, especially with Virgin Australia's value-conscious customers potentially more sensitive to an economic downturn. RBC puts a A$3.50 target price on the stock, which is down 1.45% at A$2.72. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

May 31, 2026 21:37 ET (01:37 GMT)

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