Virgin Blue In a UBS broker report, Virgins price target was cut to 70 cents from 80 cents, asVirgin slashed pretax profit forecasts by 33% to $90 million from $135 million for FY10. This followed management revising guidance to the lower end of the $80 - $110 million range, and by 24% to $210 million from $275 million in FY11. Management believed the current industry plan for 11% growth in domestic capacity in FY11 was too high given signs of softening demand in leisure travel. The broker believes Virgin is the most heavily exposed airline to any domestic oversupply, and is likely to scale back its planned 7% short-haul capacity growth.
VBA Price at posting:
46.5¢ Sentiment: Buy Disclosure: Held
