homeaviation NewsCredit Suisse has an 'outperform' rating on IndiGo; here’s why

Credit Suisse has an 'outperform' rating on IndiGo; here’s why

Credit Suisse has an 'outperform' rating on InterGlobe Aviation with a target price of Rs 2,700. With a profitable quarter in sight, the brokerage expects strong traffic recovery for the airline in October and November.

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By Sonia Shenoy  Nov 12, 2021 4:29:48 PM IST (Published)

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Interglobe Aviation has been surging ever since the management spoke to CNBC-TV18, where they said that things are definitely improving and on the mend.

Credit Suisse has an 'outperform' rating on Interglobe Aviation with a target price of Rs 2,700. With a profitable quarter in sight, the brokerage expects strong traffic recovery for the airline in October and November.
It’s a fifth straight month of improvement in passenger air traffic and yields have also picked up. So, now they say that the average passenger yield for Interglobe Aviation can rise to Rs 4.5.
Indigo is expecting to return to profitability very soon, and they said that the daily cash burn is going down. Not just individual travel but corporate travel too is coming back.
Also, Interglobe is facing lower competition. The airline continues to be the market leader. The load factor is expected to recover to 80 percent in Q3. It is also expecting a 15 percent compounded growth rate over the next three-four years.
So, positive management commentary and a brokerage report by Credit Suisse which has upped the target price, are spurring the stock.
Watch the accompanying video of CNBC-TV18’s Sonia Shenoy for more details.

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