Fund Manager Summary
The fund managers believe that the outlook for Virgin Australia Holdings Ltd presents a compelling investment opportunity, particularly due to the current industry structure characterized by a duopoly in the domestic market. In their opinion, the FY26 earnings outlook is strong, supported by hedged fuel costs and robust ticket fares. The IPO price of $2.90/share reflects a 6x P/E multiple, which is a significant 35% discount to its peer Qantas, indicating a considerable margin of safety for investors considering the IPO. Overall, the fund managers see potential for solid returns as the company navigates this favorable environment.
Source: Trading View
Commentary From The Managers
Subscribe To Unlock
Date
Price
Summary
Unlock Recent Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Tyndall Asset Management
30 June 2025
$3.09
Summary
- Tyndall Asset Management is attracted to the current industry structure of Virgin Australia, characterized by a duopoly in the domestic market.
- The majority of Virgin's earnings are derived from this domestic market.
- The FY26 earnings outlook is strong, supported by hedged fuel costs, which are the largest expense for airlines.
- Ticket fares remain robust, contributing to the positive earnings outlook.
- The IPO price at $2.90/share implies a 6x P/E multiple, representing a 35% discount compared to its peer Qantas.
- There is a considerable margin of safety in participating in the IPO.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Updates are made available to members within 12 hours in accordance with the ThesisTracker Pro Service Level Agreement.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Tyndall Asset Management
30 June 2025
$3.09
- Tyndall Asset Management is attracted to the current industry structure of Virgin Australia, characterized by a duopoly in the domestic market.
- The majority of Virgin's earnings are derived from this domestic market.
- The FY26 earnings outlook is strong, supported by hedged fuel costs, which are the largest expense for airlines.
- Ticket fares remain robust, contributing to the positive earnings outlook.
- The IPO price at $2.90/share implies a 6x P/E multiple, representing a 35% discount compared to its peer Qantas.
- There is a considerable margin of safety in participating in the IPO.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
In a landscape that appears increasingly favorable, the allure of a duopoly and a strong earnings outlook make the case for Virgin Australia Holdings Ltd compelling. With a 35% discount to peers like Qantas, the IPO presents a tantalizing margin of safety for savvy investors.
Last Updated: 30 Jun 2025
Query The Data
Frequently Asked Questions
Who is investing in Virgin Australia Holdings Ltd (ASX:VGN)?
Fund managers including Tyndall Asset Management have invested in Virgin Australia Holdings Ltd (ASX:VGN).
Why do fund managers invest in Virgin Australia Holdings Ltd?
Fund managers are investing in Virgin Australia Holdings Ltd due to its favorable industry position as part of a duopoly in the domestic market, strong FY26 earnings outlook, hedged fuel costs, and robust ticket fares. The IPO price at $2.90/share offers a significant 35% discount compared to Qantas, providing a margin of safety for investors.
What happened to Virgin Australia Holdings Ltd (ASX:VGN)?
There have been no recent updates from fund managers regarding Virgin Australia Holdings Ltd although fund managers including Tyndall Asset Management have previously commented.