Is Qantas turning around ?
Is Qantas share price a buy at current level $5.80 in term of risk and reward ? Thanks.
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Answer
Hi John,
Short answer is no. It’s had an impulsive move from $5.10 to $6.00 and made a marginal new high in the range, a pattern we don’t like that often leads to another correction in price. While QAN is cheap on traditional metrics, our concern is their focus on reputational/service issues will trump shareholder returns in the coming years + they have a huge capex task ahead thanks to recent underinvestment. We would only get interested on QAN into panic selling, not recent strength.
