“With the market capitalisation 8 per cent above pre-COVID levels and EV 10 per cent below pre-COVID, we believe the stock is not appropriately pricing Qantas’ improved earnings capacity,” he said.
Sticking with travel stocks, analyst Darshana Nair Syama has a buy rating on Corporate Travel Management saying negative earnings and valuation revisions are “unwarranted given ongoing strength in travel data points”. “We believe that the market has extrapolated the seasonal weakness over November/December for business travel as weakening indicators, because of which we expect upside surprise in both first half 2023 earnings versus the Street as well as outlook statements,” she said.
“We expect the company to guide for financial year 2023 earnings before interest and taxes growth close to consensus/Goldman Sachs estimates at approximately 9 per cent respectively offering greater certainty on short-term earnings amidst concerns of weaker industry trading,” she said. “We expect first half 2023 results to offer a positive surprise versus the Street. As a result, any short covering driven by such outperformance could push the stock higher.”
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Source: FinancialReview - 🏆 2. / 90 Read more »