Buy Spicejet, target Rs 75 : HDFC Securities
HDFC Securities has upgraded Spicejet Ltd to buy with a target price of Rs 75. The current market price of Spicejet Ltd. is Rs 62. The time period given by analyst is Medium Term when Spicejet Ltd. price can reach defined target.
SpiceJet has strong fleet addition plans for the next 10-15 years. HDFC Securities expects the yield pressure to bottom out over the next few months as the demonetisation impact lessens and new supply is absorbed, leading to an improvement in profitability.
Load factor remained at a high level of 91.3%. Yield pressure was higher due to demonetisation, which impacted demand. The industry resorted to price cuts to boost the load factor.
SpiceJet has strong fleet addition plans for the next 10-15 years. HDFC Securities expects the yield pressure to bottom out over the next few months as the demonetisation impact lessens and new supply is absorbed, leading to an improvement in profitability.
Load factor remained at a high level of 91.3%. Yield pressure was higher due to demonetisation, which impacted demand. The industry resorted to price cuts to boost the load factor.
