JPMorgan has upgraded Interglobe Aviation, the company that owns and operates IndiGo airlines, from an ‘underweight’ rating to ‘neutral’ rating. The firm has raised the target price to Rs 1,825 from Rs 1,400.
According to JPMorgan, the peak crude could signal the peak of a downgrade cycle. FY23 will be another loss-making year, the firm has cut its FY23 EBITDA by 44 percent due to crude.
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However, the firm believes that the problem is well-known documented and is perhaps in the price. Demand-supply situation looks balanced for now and the IndiGo average seat kilometer is expected to grow at a rate of 27 percent compounded growth rate from now till FY25.
Watch the accompanying video of CNBC-TV18’s Sonia Shenoy for more details.
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