Virgin shares too expensive, says Morningstar
The pre-IPO airline ‘lacks an economic moat’ and its business could be eroded by more competition.
Shares in Virgin will make return to the ASX next week.
The pricing of the Virgin Australia initial public offer is too expensive, according to a Morningstar analyst, who said private equity owner Bain Capital was selling its stake “at an opportune time” and that operational conditions could deteriorate.
Virgin is set to relist on the ASX next
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