Insights

It hasn’t been a great 2021 so far for the Qantas (ASX:QAN) share price

The Qantas Airways Limited (ASX: QAN) share price has been out of form so far in 2021. Since the start…
The post It hasn’t been a great 2021 so far for the Qantas (ASX:QAN) share price appeared first on The Motley Fool Australia. –

The Qantas Airways Limited (ASX: QAN) share price has been out of form so far in 2021.

Since the start of the year, the airline operator’s shares are down almost 4%. This compares to a 10% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.

However, that only tells you half of the story. Things were going a lot better for the Qantas share price earlier in the year.

For example, just four months ago Qantas shares were trading at $5.50. This means the airline’s shares have fallen 14.2% since peaking at that level.

What is happening with the Qantas share price?

The volatility in the Qantas share price in 2021 has been driven by uncertainty relating to the recovery of the travel market.

Earlier this year when Australia was COVID-free, Qantas was busy planning to increase its capacity to take advantage of the strong recovery in the domestic travel market. At that point, investors were scrambling to buy Qantas shares and driving them higher.

However, since then, outbreaks of COVID-19 have caused lockdowns across several states, grounding a good portion of the airline’s domestic fleet. This has spooked investors, sending many to the exits.

Is this a buying opportunity?

The good news for investors is that the majority of brokers in Australia believe the Qantas share price is in the buy zone right now.

For example, late last month analysts at Morgan Stanley put an overweight rating and $7.00 price target on the company’s shares. This implies potential upside of 48% over the next 12 months.

Elsewhere, at the end of May, the team at Citi put a buy rating and $5.89 price target on Qantas shares. This represents potential upside of 25% from where it trades today.

Finally, analysts at Goldman Sachs currently have a buy rating and $6.38 price target. Its analysts believe Qantas is a top recovery investment option for investors. Particularly given its strengthening market position and cost reduction program.

The post It hasn’t been a great 2021 so far for the Qantas (ASX:QAN) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in Qantas right now?

Before you consider Qantas, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Qantas wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Fresh blow to ASX 200 travel shares as Victoria lockdown looms large

Will the Qantas (ASX:QAN) share price take off soon?
It has been a big past year for the Qantas (ASX:QAN) share price
Here are the 5 best ASX transport shares of the 2021 financial year

The ASX shares with the most to lose from a delayed COVID reopening

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!