The Qantas Airways Limited (ASX: QAN) share price has experienced remarkable growth in the past year, surging by an impressive 44%. However, according to leading broker Goldman Sachs, this upward trajectory may not be over just yet. In fact, the analysts at Goldman Sachs have reaffirmed their conviction buy rating on Qantas and set a price target of $8.50 per share, suggesting potential upside of nearly 30% for investors over the next 12 months.
Goldman Sachs bases its optimistic outlook on recent industry trends and its confidence in Qantas’ future financial performance. The brokerage firm believes that Qantas will continue to witness significant earnings per share (EPS) growth in FY 2024 and FY 2025, surpassing pre-COVID levels. Despite this optimistic projection, Goldman Sachs feels that Qantas’ current valuation does not fully reflect its potential for increased profitability.
The positive sentiment surrounding Qantas is supported by its strong performance throughout the pandemic, as the airline operator successfully navigated the challenges posed by travel restrictions and lockdowns. Qantas implemented various cost-cutting measures to mitigate the impact of reduced travel demand and managed to maintain a solid financial position. As travel restrictions gradually ease and global travel resumes, Qantas is expected to experience a resurgence in passenger numbers and revenue.
Goldman Sachs’ endorsement of Qantas is significant, considering the firm’s reputation and expertise in analyzing market trends and investment opportunities. The confidence in Qantas’ future prospects stems from their assessment of the aviation industry and the belief that the company is well-positioned to capitalize on the anticipated recovery in global travel.
It is worth noting, however, that investment decisions should be made after careful consideration and taking into account individual risk tolerance and investment objectives. The stock market is inherently unpredictable, and past performance is not always indicative of future results.
Additionally, while Goldman Sachs provides valuable insights and analysis, other brokers and market analysts may hold different opinions. It is essential for investors to conduct thorough research and evaluate multiple sources of information before making any investment decisions.
Overall, with a positive outlook from Goldman Sachs and a strong track record of performance, Qantas Airways appears to be well-positioned for continued growth in the coming months. As the global travel industry recovers, investors may find Qantas to be an attractive option within their investment portfolios, considering its potential for capital appreciation. However, investors are urged to exercise prudence and consult with a financial advisor before making any investment decisions.
