Air New Zealand's shares have risen more than 30 percent in the past 12 months and an analyst believes the stock is likely to rise further.
Photo: RNZ
Forsyth Barr head of research Andy Bowley has a 12-month target price for the shares of $2.30 compared with their current share price of about $1.84 and he expects them to outperform the rest of the market.
Last week, Air New Zealand reported a 40 percent jump in net profit to $140 million for the six months to December.
Mr Bowley says he thinks Air New Zealand can lift its performance further, due to fuel price stability, strengthening yields and the introduction of lower cost aircraft.
Air New Zealand itself expects normalised pre-tax earnings for the year to the end of June will come in at more than $300 million, compared to $256 million the previous year and $91 million the year before.
Mr Bowley forecasts a $327 million result.
