Alliance Aviation Services: Start of the upgrade cycle?

About the author:

Author name:

By Billy Boulton

Job title:

Associate Analyst

Date posted:

14 July 2023, 7:00 AM

Sectors Covered:

Agriculture, Travel, Chemicals, Food & Beverage

• Alliance Aviation Services (ASX:AQZ) announced that its unaudited FY23 underlying NPBT is expected to exceed the top end of its guidance range by 3.5%. This is a 13.8% beat to MorgansF. AQZ reports its FY23 result post market close on 9 August.
• We think AQZ’s FY23 underlying NPBT implies a starting point for FY24 of A$172m EBITDA. We upgrade our forecasts and our PT moves to (login to view).
• We maintain an ADD rating on AQZ given it is potentially on the cusp on earnings upgrade cycle underpinned by increasing utilisation of its current E190 fleet and its second E190 expansion program.

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