It has been a very positive start to the week for the S&P/ASX 200 Index (ASX: XJO). In afternoon trade the benchmark index is up a sizeable 0.9%.
One of the strongest performers on the index today has been the Qantas Airways Limited (ASX: QAN) share price with a 5% gain to $3.56.
This means the airline operator's shares are now up over 75% from their March low.
Is it too late to buy Qantas shares?
I don't think it is too late to make a small investment in Qantas' shares, even after this strong rebound. Though, this is on the assumption that there isn't a flare up in coronavirus infections and the crisis passes before the end of the year.
But to give readers a balanced view and to help you with your decision, I thought I would look to see what brokers across the country are saying about Qantas.
In the bull's corner we have analysts at Citi, Morgan Stanley, and UBS.
According to notes from the last few weeks, they each have buy ratings (or equivalents) on Qantas' shares.
Citi has a price target of $3.70, Morgan Stanley leads the pack with a $5.60 price target, and UBS sits in the middle with a $4.65 price target. The latter price target implies potential upside of almost 31% for its shares over the next 12 months.
All three brokers spoke positively about its liquidity and appear to expect the airline to come out of the crisis is a strong position.
What about the bears?
Not everyone is as positive on Qantas. Over at Credit Suisse its analysts have slapped an underperform rating and lowly $2.20 price target on its shares. This implies potential downside of 38% over the next 12 months.
It has concerns that a full recovery might not be until FY 2023 for the industry. In addition to this, it appears to think dividends may be out of the equation for some time. Instead, it feels free cash flow is likely to be used towards repairing the balance sheet and renewing its fleet.
And finally, Goldman Sachs and Macquarie Group Ltd (ASX: MQG) both have neutral ratings on Qantas' shares. These two brokers have $3.03 and $4.80 price targets, respectively, for the airline.
Overall, at this point I would side with the bulls. And I wouldn't be surprised to see its shares ascend further over the coming months.
