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New Delhi: As IndiGo continues to be affected with the massive disruptions in its operations, global brokerage firm Jefferies has reduced the share target price of InterGlobe Aviation, the parent company of the airline. The brokerage has maintained its buy rating on the stock but reduced the target price to Rs 6,035 apiece. The brokerage has downgraded the target citing the current operational disruptions and predicted higher costs would hit the near-term earnings of the airline. However, in a positive sign, the brokerage mentioned that IndiGo’s huge market position in India and plans of global expansion justify upside from current levels.
Jefferies downgraded the InterGlobe Aviation stock and lowered its share price target from Rs 7,025 to Rs 6,035.
The brokerage has maintained its Buy rating on IndiGo share due to the airline’s ‘proven track record’ cut comes alongside a steep reduction in FY26–FY28 earnings estimates by 13–53%.
InterGlobe Aviation details on BSE as on 12 December
Jefferies said the action taken by Directorate General of Civil Aviation (DGCA) is a key downside risk for the stock, however, if the aviation watchdog softens its stance on capacity, it could help the stock to rise.
"Incorporating the impact of recent disruption (ex penalty/compensation payment), escalation in employee costs & impact of INR dep, we sharply cut our estimates for FY26-FY28 by 13-53% and our target price to Rs 6035, retaining Buy, on 10x Dec-27 EV/EBITDA (earlier 11x Sep-27; current target price implies 26x FY28 EPS)," the brokerage said.
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