BUZZ-Morningstar lowers fair value estimate, sees wider loss for Air NZ

AAR CORP.
Morningstar, Inc.

AAR CORP.

AIR

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Morningstar, Inc.

MORN

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May 18 - ** Morningstar lowers fair value estimate for Air New Zealand AIR.NZ by 6% to NZ$0.75 per share.

** Sees the airline's pre-tax loss widen to NZ$377 million this year from its prior forecast of NZ$234 million; expects a fiscal 2027 pre-tax loss of NZ$129 million from NZ$47 million before.

** The company forecast on Thursday its biggest annual pre-tax loss in four years due to high fuel costs following the conflict in the Middle East.

** However, Morningstar still expects a return to profitability in fiscal 2028 for the airline, underpinned by aircraft availability.

** "Downturn in New Zealand is cyclical, not structural, and engine issues appear to be easing" - Morningstar said.

** Two of 6 analysts rate the stock "hold" and 4 "sell"; their median PT is NZ$0.41, according to data compiled by LSEG.

** Stock down 31% year to date as of last close.


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