Just about all major broking houses have big buy recommendations on Qantas with some having price targets of $5.20 per share a massive 30% above yesterday's close. This would place a value on Qantas of between $9 - $10 Billion.

While the war in Iraq remains a major risk many positive factors outweigh this:-

* 75% of fuel hedged at $25USD a barrel compared to current price of $35USD;
* Very strong domestic market which is described as one of the most lucrative in the world;
* Extremely strong international load factors and increasing yields;
* Strong performance from start up Australian Airlines which is set to add 55c per share to the valuation;
* Resilience of QF's major markets to any impending war;
* Market share gains especially from United Airlines.

Deutsche expects EBIT for QF to settle in at a sustainable 11% of turnover. Based on forecast turnover of $12Billion this would equate to a EBIT of $1.320 Billion. This will further increase in the ANZ partnership gets the green light.