Jefferies cuts ANA Holdings stock rating, lowers price target

Published 26/02/2025, 12:54
Jefferies cuts ANA Holdings stock rating, lowers price target

On Wednesday, ANA Holdings Inc (9202:JP) (OTC: ALNPY) stock rating was downgraded from Buy to Hold by Jefferies, with a revised price target set to JPY3,200 from the previous JPY3,600. The downgrade followed the company’s third-quarter earnings for the fiscal year ending March 2025, which prompted Jefferies to adjust their earnings forecasts for the airline.

The analyst from Jefferies anticipates that ANA Holdings will exceed its fourth-quarter operating profit (OP) target for FY3/25, benefiting from favorable foreign exchange rates and fuel prices. However, the outlook for FY3/26 is less optimistic due to several challenges. These include an expected loss of market share to Chinese airlines, delays in the delivery of 11 Boeing (NYSE:BA) aircraft, and shortages of parts.

Jefferies estimates an operating profit of JPY183.9 billion for ANA Holdings, which is below the company’s own forecast of JPY200.0 billion and the consensus estimate of JPY194.1 billion. The revised expectations reflect the potential impact of the aforementioned issues on the airline’s performance.

The report from Jefferies concludes with a cautious stance on ANA Holdings’ future earnings, which has led to the decision to downgrade the stock to a Hold rating. The new price target of JPY3,200 represents a decrease from the previous target, aligning with the firm’s revised outlook for the airline’s financial performance.

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