5 hours Ago
ASX 200 investors are probably feeling disappointed today. After yesterday's big share market drop, the ASX 200 has lost its early lead and is back in red territory. But let's talk about what's going on with the ( ) share price.
While the ASX 200 is looking rather nervous right now, Qantas shares have been anything but. The national carrier and closed at $7.56 a share yesterday afternoon.
But this morning, those same shares opened at $7.71 before climbing as high as $7.85 this afternoon.
For one, that $7.85 share price represents a new 52-week high for Qantas shares. But it is also the highest Qantas has ever traded at.
The last time the airline was even close to this pricing was back in the pre-COVID days of early 2020. But even then, the company only got as high as the $7.40 range.
In Qantas' long history as an ASX company, we have never seen it hit $7.85. As it currently stands, the airline is now up a healthy 46% over 2024 so far, as well as by a huge 63.
15% over the past 12 months. Check all of that out for yourself below: Why is the Qantas share price at a new record high today? It's not immediately clear why Qantas shares are climbing so decisively this Wednesday. One possible reason is the fine Qantas was hit with just yesterday.
As , Qantas has been facing Federal Court this week over the illegal sacking of 1,700 workers during the pandemic. The Federal Court ruled that Qantas could face more than $150 million in estimated penalties and backpay for the sackings, with payments to workers ranging from $30,000 to $100,000. When this news was made public, the Qantas share price continued to climb.
So perhaps investors were worried the airline could have been hit with an even higher bill and got off lightly. It's possible that this optimism is continuing to feed Qantas shares today. Another development that could be helping Qantas to its new record highs today is a broker note out from Jefferies.
As , Jefferies analyst Anthony Moulder has maintained a 'buy' rating on the Qantas share price, but raised the broker's 12-month share price target from $7.98 a share to $10.523.
The ASX broker stated that higher earnings expectations, a lower oil price, and a possible return to status for Qantas shares could spur a re-rating of Qantas' shares: With Qantas now widely expected to return to dividend paying status in 1H25, we expect a key platform to the re-rate of Qantas will be clearer to the market inside the next 4 months. So this optimistic forecast for the Qantas share price from this ASX broker could also be helping to tempt buyers today. Whatever the reason (or reasons) for Qantas' share price gains this Wednesday, no doubt investors won't be complaining.
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