Indigo Shares Jump 4% After Jefferies Upgrade

Friday, 23 August 2024, 07:00

Indigo shares have jumped 4% following Jefferies' upgrade. The recent price rise highlights optimistic growth potential from analysts like Jefferies and HSBC.
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Indigo Shares Jump 4% After Jefferies Upgrade

Indigo Shares Surge After Market Upgrades

Interglobe Aviation, the parent company of IndiGo Airlines, witnessed a notable 4% rise in its share price, hitting ₹4,459 on August 22. This surge follows encouraging forecasts from Jefferies and HSBC, which spotlight the airline's robust growth prospects across various sectors.

Analysts' Insights on Indigo Stock

  • Jefferies upgraded its rating from 'hold' to 'buy.'
  • HSBC maintains a 'buy' rating for this leading airline.
  • Jefferies raised the target price to ₹5,225, indicating a potential upside of 21.5%.

These analysts note that Indigo has consistently outperformed the market over the past 12-18 months. They attribute strong performance to limited industry capacity maintaining high yields and spreads. Additionally, recent supply increases have caused a revision in their spread estimates and EPS forecasts by 6-7% for FY26/27. This leads to a critical question for investors: Should you buy, sell, or hold?


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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