Update shared on 07 Nov 2025
Fair value Decreased 1.21%Qantas Airways' analyst price target saw a modest decline from A$12.70 to A$12.55, as analysts cited updated valuation assumptions and tempered profit margin forecasts, even though revenue growth estimates have improved.
Analyst Commentary
Recent Street research reflects a nuanced stance among analysts regarding Qantas Airways, with both positive developments and lingering concerns shaping the investment outlook.
Bullish Takeaways
- Bullish analysts have raised price targets due to the company's successful earnings upgrades and more optimistic revenue growth expectations.
- The roll-forward of valuation periods has contributed to upward price target revisions. This indicates confidence in the near-term financial trajectory.
- Operational execution and ongoing growth in core business segments are seen as drivers supporting better medium-term performance.
Bearish Takeaways
- Despite price target increases, some analysts have opted for a more cautious stance due to valuation concerns. Target prices still remain below the current market price.
- Worries about compressed profit margins have emerged, tempering the positive impact of upgraded earnings projections.
- Higher expectations for earnings have not fully offset broader concerns around sustained premium valuation. This has led to a less optimistic recommendation from major firms such as JPMorgan.
What's in the News
- Qantas Airways has announced a fully franked special dividend of AUD 0.099 per share for the six months ended June 30, 2025. The dividend is payable on October 15, 2025, with an ex date of September 16, 2025 and a record date of September 17, 2025. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has decreased slightly, moving from A$12.70 to A$12.55.
- Discount Rate has fallen marginally, now at 8.57% compared to the previous 8.62%.
- Revenue Growth estimate has risen modestly to 5.79% from 5.66%.
- Net Profit Margin projection has edged down, currently at 7.52% versus 7.59% earlier.
- Future P/E ratio has ticked up slightly, now at 10.72x compared to 10.62x previously.
Disclaimer
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