Jefferies has reiterated its Buy rating on IndiGo (InterGlobe Aviation), reducing the target price to ₹5,100 from ₹5,225, suggesting a potential upside of approximately 16.6% from the current market price of ₹4,373.70.
Key Highlights from Jefferies’ Report
- Cost Pressures from Aircraft Grounding: Higher costs due to aircraft grounding (AOG) impacted the Q2 results, with the grounding impact peaking in this quarter.
- Capacity Growth Outlook: Jefferies expects capacity growth to improve as the grounding issues are resolved, providing better medium-term visibility for IndiGo.
- Yield Impact in the Short Term: Short-term yields were affected, but the brokerage remains optimistic about recovery in the medium term.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making investment decisions.
