Street View: Australia's Qantas' loyalty program to soften potential earnings volatility
** Qantas Airways QAN.AX reported a 16% drop in its annual profit on Thursday, but announced an additional share buyback of A$400 mln($271.88 mln)
** Shares of the airline rose as much as 1.6% during the day
** QAN did not announce dividend for a fifth straight year
LOYALTY THE KEY TO POTENTIAL PROFITS
** Morningstar maintains fair value estimate of A$6.10/shr and expects QAN's loyalty program to "cushion earnings volatility in the flying business"
** Jefferies raises PT to A$7.98/shr from A$7.85/shr; says QAN remains well-positioned to adjust capacity between airline and budget segment Jetstar, based on demand amongst corporates, premium leisure and discount leisure
** Citi raises PT to A$6.60/shr from A$5.85/shr; waits to see signs of stabilisation in the airline market before turning more positive
($1 = 1.4712 Australian dollars)
Reporting by Shivangi Lahiri in Bengaluru
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