In the morning trade on November 22, shares of Interglobe Aviation, the parent company of the low-cost airline IndiGo, saw a 1% increase following a bullish call by global brokerage firm Morgan Stanley.
The firm assigned an “overweight” rating to the stock, setting a target price of Rs 3,217, indicating a promising 21% upside from the current price.
Morgan Stanley highlighted the favorable near-term demand and airfare trends, expressing confidence in IndiGo’s position.
The brokerage firm emphasized the potential benefits for IndiGo amid ongoing industry consolidation. Furthermore, it deemed the airline’s valuation attractive, noting that it currently trades at 7.3 times (x) EV EBITDA, compared to the pre-Covid mean of 8.5x.
As of 12:33 pm, the shares experienced a slight dip, trading 0.76% lower at ₹2,605.90. Despite the momentary decline, the overall positive sentiment indicates investor optimism in response to Morgan Stanley’s encouraging outlook for IndiGo.
