Citi upgrades Qantas Airways stock to Buy on international growth potential

Published 17/07/2025, 09:32
Citi upgrades Qantas Airways stock to Buy on international growth potential

Investing.com - Citi upgraded Qantas Airways Ltd. (ASX:QAN) stock rating to Buy from Neutral on Thursday, while raising its price target to AUD12.20 from AUD9.60. The airline, currently valued at $10.64 billion, has demonstrated strong momentum with a 33.58% gain year-to-date and trades near its 52-week high.

The upgrade comes as Citi identifies international travel and the low-cost carrier market as the two main growth segments in Australia, with Qantas positioned to capitalize on both areas better than its competitor Virgin Australia.

Citi highlighted Qantas Group’s commitment to Western Sydney Airport, noting that both Jetstar and Qantas mainline are committed to the new facility, unlike Virgin Australia, giving Qantas an advantage in capturing growth and offsetting potential market cannibalization.

The investment bank increased its earnings before interest and tax (EBIT) forecast for Qantas by approximately 3% through fiscal years 2026 and 2027, reflecting modest available seat kilometer (ASK) revisions offset by higher fuel-driven margins.

Citi expects Qantas to outperform Virgin Australia in top-line growth while benefiting from the same fuel-related tailwinds, making it the firm’s preferred airline investment in the Australian market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.