In morning trade the Qantas Airways Limited (ASX: QAN) share price has edged higher.
At the time of writing the airline operator's shares have risen 1% to $5.39.
Is the Qantas share price in the buy zone?
I think that the Qantas share price is trading at a very attractive level at present and believe it could be a good option for investors.
Especially given its capacity management and the rationalisation of competitive markets, both domestic and international.
I'm not alone in thinking that Qantas shares are in the buy zone.
According to a note out of Citi this morning, its analysts have retained their buy rating, albeit with a trimmed price target of $7.14.
Despite the price target cut, it still implies potential upside of over 32% for its shares over the next 12 months.
The broker reduced its price target to reflect weaker demand, sparked by falling house prices. The broker notes that there has been a strong correlation between the two over the last two decades.
However, due to rational competition in the domestic market and a recovery in the resources sector, the broker doesn't expect demand to weaken drastically.
Overall, it continues to believe that the market is being too bearish on Qantas and feels its shares are great value at the current level.
Citi isn't the only broker that is positive on Qantas. According to a note out of Goldman Sachs last week, it has the airline operator's shares on its conviction buy list with a $6.93 price target.
Goldman believes the company is well-positioned to deliver a strong second half thanks to positive forward bookings, effective capacity management, and transformation benefits.
I would have to agree with both brokers on Qantas and would suggest investors choose it ahead of industry rivals Air New Zealand Limited (ASX: AIZ) and Virgin Australia Holdings Ltd (ASX: VAH).
