Jefferies has issued a buy rating on IndiGo, setting a target price of ₹5,200 per share. The brokerage cites several key factors supporting this recommendation, including the contracting operations of select competitors and IndiGo’s superior cost structure, which are seen as significant tailwinds for the airline.
Additionally, Jefferies notes that a sustained decline in crude oil prices could positively impact profit estimates. However, there are concerns regarding potential slowdowns in global travel and the implications of rising costs, excluding fuel. The increasing value of a stake sale by the promoter is also highlighted as a potential pushback against the airline’s performance.
Overall, Jefferies remains optimistic about IndiGo’s ability to navigate these challenges and capitalize on growth opportunities in the aviation market.
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