Qantas Airways Ltd (ASX: QAN) shares have been somewhat of a mixed bag in 2024. After surging earlier in the year, they have traded sideways since May.
At the time of writing, shares in the flying kangaroo are swapping hands at $6.03 per share, down more than 1% in the past month.
They now trade at a price-to-earnings ratio (P/E) of 6.6 times, which is cheaper than the broader market's P/E of around 18 times.
Qantas shares have also caught the attention of analysts, with some forecasting quite a meaningful upside over the next 12 months.
How much might $1,000 invested in Qantas shares be worth in a year? Let's see what analysts think is possible.
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Brokers bullish on Qantas shares
On balance, brokers are bullish on Qantas. According to CommSec, the consensus of analysts is that it is a buy.
Goldman Sachs has put a spotlight on Qantas, citing the airline's stronger earnings and cost reductions as key reasons for its outlook.
Qantas recently employed a cost reduction program that aimed to cut over $1 billion in ex-fuel operating costs by FY24. The broker says this has already delivered "permanent cost benefits to the group".
The broker thinks the market is currently undervaluing Qantas shares, especially when compared to regional and US airline peers.
In its note, Goldman says that Qantas was trading at a P/E of 6.4 times FY25 earnings, which represented a 29% discount compared to its peers.
Historically, Qantas has traded at a 14% discount, so this current level suggests the shares are heavily undervalued.
What could $1,000 in Qantas shares be worth?
Let's break down what a $1,000 investment in Qantas shares could look like if Goldman Sachs' predictions come to fruition.
Firstly, $1,000 gets us about 165 shares today.
With the broker's price target set at $8.05, this $1,000 investment at the current price could potentially grow to $1,335 in 12 months. That's a return of 33.5%, excluding any dividends.
But there's more. Goldman Sachs also expects Qantas to reinstate its dividend in FY25, predicting a payout of 30 cents per share.
At the current share price, this would provide a yield of around 5%.
For an investor holding $1,000 worth of shares, this could mean an additional $49.75 in dividend income, pushing the total potential return to $1,384.75.
Foolish takeaway
If Goldman's price targets come to perfect fruition, then a $1,000 investment in Qantas shares today might be worth $1,384 in a year's time.
This includes a potential dividend of 30 cents per share. Without this, it could be worth $1,335.
Qantas shares are down 4% in the past 12 months.
