Fund Managers Target Virgin Australia as Valuation Opportunity Ahead of Earnings Season

Australian fund managers are highlighting Virgin Australia as a prime investment as the country’s reporting season approaches. Portfolio manager Blake Henricks of Firetrail Investments noted that Virgin’s price‑to‑earnings ratio of 5.8 is well below rival Qantas’s 9.2 and that the airline has shed loss‑making international routes and simplified its fleet, positioning it for a potential 50% upside despite a 20% share decline this year.

Other mid‑cap recommendations include over‑50s community operator GemLife, car‑sales platform Car Group, furniture retailer Nick Scali, jewellery chain Lovisa, insurance broker AUB Group and sleep‑apnoea device maker ResMed. Analysts warned that CSL, a blood‑plasma company, remains vulnerable after a near $10 billion valuation drop and multiple earnings cuts.

Overall, the analysts see a broad range of low‑multiple opportunities across health, retail and consumer stocks, while remaining cautious on sectors with recent earnings volatility.