Citi predicts better yields for IndiGo in Q4, raises target price to Rs 5,200

Global brokerage Citi has reiterated its 'Buy' rating on Interglobe Aviation and increased its target price to Rs 5,200 from Rs 5,100 previously, citing better yield expectations for the company in Q4FY25, backed by higher demand.

The foreign brokerage firm’s positive outlook is also driven by strong air traffic demand and IndiGo's dominant market share. The brokerage has also initiated a 90-day positive Catalyst Watch on the stock.

Citi's analysis points to a significant improvement in Passenger Load Factors (PLFs), a measure of capacity utilization, in the fourth quarter of fiscal year 2025 (4QFY25), which is typically a seasonally weak period. This surge in PLFs indicates robust demand for air travel, particularly for IndiGo, which holds a substantial share of the Indian aviation market.


A notable factor contributing to this increased demand is the Maha Kumbh, a major religious gathering in Uttar Pradesh, which has led to a surge in traffic to airports in the region. Citi believes this increased traffic will translate into better yields for IndiGo in 4QFY25.

The initiation of a 90-day positive Catalyst Watch further underscores Citi's expectation of positive developments for the company in the near term.

Investors may also view Citi's continued bullish stance as a positive signal, potentially leading to increased interest in Interglobe Aviation's stock.

IndiGo share price history

Over the past year, IndiGo shares have increased by 45.64%. For the year-to-date (YTD) performance, there has been a decline of 1.78%. Over the last six months, the price has risen by 4.91%, while the three-month performance shows a gain of 10.81%.

IndiGo shares closed flat at Rs 4,509.60 on the BSE on Friday.

IndiGo technical performance

Currently, IndiGo shares are trading above all their significant short-, medium-, and long-term exponential moving averages (EMAs) and are oscillating near the 61.4 mark on the RSI, according to Trendlyne data.

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