Question: Do you have any updates on Qantas in light of the recent market activity?
Answer (Peter Switzer): You have to remember that Qantas has had a terrific run, so when a piece of news hits, although not terribly material, profit taking occurs. I think the sell-off was way overdone, however, it comes after a very strong rise.
The analysts remain positive – according to FN Arena, a target price of $4.79 and a very positive sentiment rating of +0.9.
Question: With the recent speculation that the upcoming budget will provide funding for infrastructure, what companies should benefit?
Answer (Paul Rickard): I guess it depends a little on the quantum and type of infrastructure spending, the timeframe (how soon), and whether the news is already priced in.
I can think of three types of companies that could potentially benefit:
a) the listed infrastructure operators such as Transurban, Sydney Airports, APA Group etc;
b) the construction companies, such as CIMC, Lend Lease, possibly Downer EDI; and
c) the materials providers (cement, concrete etc)– such as Adelaide Brighton, Boral etc.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.