Qantas shares have hit a new high after US investment bank Goldman Sachs upgraded its rating on the airline. Qantas shares gained 3.5 per cent to hit $6.15 today after Goldman upgraded its rating on the stock from neutral to buy. After four years of “negligible growth”, Goldman analysts tip a resurrection in domestic travel volume growth to 3 per cent on tourist flow, increased demand and an easing mining contraction. Qantas’s international volume outlook is that of 6 per cent growth in the same period backed by China, US and Asia transit traffic.
Allaying concerns recent highs in Qantas mightn’t leave it much headroom, Goldman says: “We believe the strong share price performance of the A/NZ airlines earlier this year was representative of a global peer re- rating, rather than an improvement in the underlying outlook or financials.” Shares in Qantas have soared more than 80 per cent in 2017, as the company’s financial performance continues to improve under the restructuring strategy of chief executive Alan Joyce.