Australia's Qantas: Morgan Stanley says share price 'below normal', hikes PT

Global Brokerage

23/06/2021 01:28

** Morgan Stanley says Australia's flag carrier Qantas'
 QAN.AX  current share price still below normal, hikes PT to
A$7.00 from A$5.90 
    ** Brokerage says QAN is trading ~15% below its pre-COVID
market capitalisation, retaining upside to a "generic" COVID
recovery
    ** Brokerage assumes 18% of FY19 group capacity in FY21, 
having seen a progressive improvement in domestic travel through
the year
    ** Assuming >80% of normal group domestic settings, QAN
should be cash-flow positive irrespective of the international
travel recovery - MS
    ** Brokerage says QAN's current share price is assuming
minimal realisation of co's targeted A$1 bln ($755.30
mln)structural cost out, despite management's strong track
record in this area
    
    ($1 = 1.3240 Australian dollars)

 (Reporting by Arundhati Dutta in Bengaluru)
 ((Arundhati.Dutta@thomsonreuters.com;))