Morningstar assigns lower fair value estimate to Virgin Australia than IPO offer price

Virgin Australia Holdings

15/06/2025 19:54

June 15 (Reuters) - - ** Analysts at Morningstar are of the opinion that Virgin Australia's IPO-VIR.AX initial public offering (IPO) is "too expensive"

** Investment research firm assigns fair value estimate of A$2.60/shr to Australia's No. 2 airline, compared with its IPO offer price of A$2.90/shr

** While we think Virgin is better placed to compete at its new midmarket position, its smaller scale leaves it exposed to aggressive pricing and capacity moves from Qantas QAN.AX - Morningstar

** Morningstar expects rising depreciation expense amid fleet renewal to constrain net profit in coming years for Virgin Australia

** Stock set to start trading on June 24

 (Reporting by Shivangi Lahiri in Bengaluru)

 ((shivangi.lahiri@thomsonreuters.com))