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Morgan Stanley says Qantas valuation lags improving earnings quality

Morgan Stanley said Qantas’s valuation does not reflect improving earnings quality. Qantas trades on an FY 2027 price-to-earnings multiple of 9.8X, about 20% below the median of global peers, analyst Joseph Michael said.

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Qantas Airways's valuation doesn't reflect the improving quality of its earnings, according to Morgan Stanley.

Qantas trades on a FY 2027 price-to-earnings multiple of 9.8X.

That's some 20% below the median of global peers despite Qantas's high returns, analyst Joseph Michael says.

MS has an overwe…