Vistara flight cancellations lead to airfare hike, boosting IndiGo shares to new high

From Business Today: 2024-04-10 02:51:45

InterGlobe Aviation (IndiGo) saw its shares surge to a new all-time high as airfare was hiked by 20-25% on select routes due to high demand post Vistara flight cancellations. With a market cap of over Rs 1.45 lakh crore, the stock has gained over 102% from its 52-week low.

Target price for IndiGo shares set at Rs 4,000 by UBS, Rs 3,435 by Jefferies, and Rs 4,009 by ICICI Securities. Prabhudas Lilladher retains a ‘accumulate’ rating with a target price of Rs 3,961 as they expect revenue to grow at 13% CAGR over the next 2 years.

Motilal Oswal forecasts that India could become the third-largest aviation market globally by CY35 due to underpenetration. IndiGo aims to grow its international network while focusing on affordable fares and customer experience. InCred Equities, however, gives a ‘reduce’ rating with a target price of Rs 2,000, citing fleet grounding uncertainties.



Read more at Business Today: Vistara turbulence lift IndiGo shares to new record high, stock jumps 4%