Credit Suisse upgraded InterGlobe Aviation share price rose in early trade today after Credit Suisse upgraded the stock to outperform from neutral citing gains from the challenges faced by Jet Airways to run its daily operations.
InterGlobe Aviation share price rose 1.8% or 26 points to 1452 level compared to the previous close of 1426 on BSE.
InterGlobe Aviation share price has been gaining for the last five days and risen 10.56% during the period. InterGlobe Aviation share has gained 22.79% since the beginning of this year and 14% during the last one year.
10 of 19 brokerages rate InterGlobe Aviation share "buy" or 'outperform', six "hold", one "underperform" and two "sell", according to analysts' recommendations tracked by Reuters.
The InterGlobe Aviation share was trading above its 50-day and 200-day moving average of 1,209 and 1044 levels, respectively. InterGlobe Aviation share has been upgraded to outperform from neutral with a price target of Rs 1650 compared to the previous target of 1075. Jet Airways capacity withdrawal is a positive for InterGlobe's planned, strong capacity addition, said the international brokerage.
It may be difficult to find a new partner for Jet Airways and restore full operations which will benefit IndiGo. The brokerage raised FY 19 earnings to Rs 0 from loss of Rs 8 per share for IndiGo.
It also revised FY 20/21 estimated earnings to Rs 52/86 per share from Rs 35/65 per share on better yield prospects.
Meanwhile, HSBC in a brokerage said domestic traffic growth has been slowest in last five years as fares seem to have moved north, denting demand.
Load factor has fallen 2 pts despite capacity (seats) growth slowing to 8%. The brokerage has given a target price of Rs 79.50 with a hold on SpiceJet. It has assigned reduce call on Jet Airways with a price target of Rs 190.
Edited by Aseem Thapliyal