Hi All,More on the broker coverage of VBA. I see VBA rising...

Hi All,

More on the broker coverage of VBA. I see VBA rising soon, and fast

MND Ordinett, rate VBA a solid performer with an earlier price target of 64cents.

"Domestic loads were stable in October, rising 0.4ppt on pcp to 84.9% which is the highest domestic load factor seen in 2009.
Passengers were down 6.5% on pcp, however the load factor was supported by a reduction in capacity with domestic ASKs
down 5.2% on pcp. International loads have continued a positive trend with a load of 77.4% in October. This is the highest international load factor seen by Virgin Blue since the commencement of long haul VAustralia routes in February 2009. We note that a comparison with the pcp has little meaning since the pcp does not include the long haul operations. This is demonstrated by the 173% increase in capacity (ASKs) on pcp while passengers were up 37% on pcp. This data would have been known to management when it upgraded its outlook for FY10 at its AGM last week. Previously Virgin Blue had guided for ‘break even’ NPAT in FY10. At the AGM it guided to be ‘profitable’ in FY10. While the upgrade was subtle we were encouraged by the fact that Virgin Blue management referred to it as 'improved market outlook from August from break-even
to profitable’. We were also encouraged by the comment that Virgin Blue is ‘currently profitable’. Given the second half is likely to be better than the first we expect Virgin Blue to be comfortably profitable in FY10 if it is already profitable this early in the year. We see considerable upside in Virgin Blue from its current price. We believe the market currently attributes zero to
negative value for VAustralia and the share price is likely to be restrained until the market gains more confidence that VAustralia is turning around. In this respect the October data is encouraging.