IndiGo shares rose almost 4% in early trade on August 22 after global brokerage firm Jefferies upgraded the aviation company to a ‘buy’ recommendation and increased its target price.
The firm has raised the target price to ₹5,225, up from ₹4,400 before. This suggests that the analyst predicts a 21% upside from the August 21 closing share price.
Jefferies believes IndiGo’s operating performance has frequently surprised over the last 12-18 months as it navigated cost and capacity headwinds.
The brokerage stated, “IndiGo remains in the driver’s seat, with new avenues of growth…,” and added that the domestic airline’s yields and spreads have remained strong due to the uncertain industry capacity situation and a noticeable rise in supply increases recently. However, issues with global OEMs indicate that aircraft demand and supply may stay balanced.
As of 10:52 am, IndiGo shares were trading 3.55% higher at Rs 4,452.65 on the NSE.
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