Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Qantas Airways (ASX: QAN) & Virgin Australia (ASX: VAH)
- September quarterly reports from both listed domestic airlines indicate that there is some turbulence in the air; VAH reported an underlying loss before tax of A$3.6m, versus a profit of A$8.5m in the pcp, while revenues at QAN fell by 3% on the back of lower international airfares. The market however, see value in both stocks.
- VAH - Share price: A$0.225, IRESS consensus Target Price: A$0.28 => 24% upside potential, 0% dividend yield.
- QAN - Share price: A$2.94, IRESS consensus Target Price: A$3.99 => 36% upside potential, 5% dividend yield => 41% total return.
- From a valuation perspective, we prefer Qantas (forward PER 5.5x versus VAH 22.5x).