2144 GMT - UBS equity analysts don't think shares in Qantas have further to rise, even though the airline's 1H result suggested pretax profits would be up 14% in FY 2025. They lift their target price to A$9.30/share from A$9.00, but argue the share price "appropriately reflects a valuation discount for Qantas's stage in its capex cycle" and that the stock isn't obviously undervalued anymore. Still, UBS believes things are looking up, saying they expect costs to be contained as capacity growth stabilizes, on-time performance to improve and that there will be benefits from a transformation program and fleet renewal. Demand also appears relatively resilient. Qantas closed Friday at A$9.52, up from A$8.89 prior to its 1H result. (mike.cherney@wsj.com; @Mike_Cherney)
(END) Dow Jones Newswires
March 02, 2025 16:44 ET (21:44 GMT)
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