The Qantas (ASX:QAN) share price soared 12% higher last week

The Qantas Airways Limited (ASX:QAN) share price was on form last week and soared 12% higher over the five days…
The post The Qantas (ASX:QAN) share price soared 12% higher last week appeared first on Motley Fool Australia. –

plane flying across share markey graph, asx 200 travel shares, qantas share price

The Qantas Airways Limited (ASX: QAN) share price was a strong performer last week and soared notably higher.

Over the five days, the airline operator’s shares ascended by 12% to end the week at $5.11.

This was the highest level the Qantas share price has traded at since March.

Why did the Qantas share price soar last week?

Qantas and a number of other travel shares were in demand with investors last week after biotech giant Pfizer released an update on its COVID-19 vaccine trial.

While it is still early days, its trial results appear to demonstrate the initial evidence of its vaccine’s ability to prevent COVID-19 infections.

According to the update, the vaccine candidate was found to be more than 90% effective in preventing COVID-19 in participants with no evidence of prior SARS-CoV-2 infection.

This was better than experts, and even Pfizer, were expecting and has sparked hopes that global travel markets could rebound much quicker than forecast.

This would be great news for Qantas, which has experienced a sharp reduction in demand for flights during the pandemic.

For example, at its recent annual general meeting, CEO Alan Joyce revealed that Group Domestic capacity was below 30% of pre-COVID levels in late October. This compares to its forecast of operating at about 60% of pre-COVID levels by now.

In light of this, despite its rampant cost cutting, this delay resulted in a $100 million negative impact on its earnings for the first quarter of FY 2021. A similar impact is expected in the second quarter as well.

As a result, the sooner a vaccine is available and travel markets return to normal, the sooner Qantas will be profitable again.

Is the Qantas share price in the buy zone?

One broker that still sees a little bit of upside for the Qantas share price is UBS. It recently put a buy rating and $5.25 price target on the company’s shares.

Though, there’s every chance the broker will reassess this price target in the coming weeks as more is known about the Pfizer vaccine. So, stay tuned for that.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post The Qantas (ASX:QAN) share price soared 12% higher last week appeared first on Motley Fool Australia.

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!