Morningstar raises fair value estimate for Virgin Australia on higher earnings forecast

Virgin Australia Holdings

31/08/2025 22:20

** Analysts at Morningstar hike fair value estimate for airline operator Virgin Australia VGN.AX by 8% to A$2.80 on higher near-term earnings guidance

** VGN said it expected higher income this business year on Friday

** Morningstar says co's FY underlying EBIT came in 1% above their forecast

** Morningstar sees higher fares and fuller planes leading into the next year for co

** We expect capacity improvements at Virgin in the near term, supported by new aircraft deliveries - Morningstar

** However, Morningstar expects elevated domestic fares to attract competition in the medium term

** Analysts on average rate the stock "buy"; their median PT is A$3.90 – LSEG data

 (Reporting by John Biju in Bengaluru; editing by Diane Craft)

 ((John.Biju@thomsonreuters.com;))