Analysts' picks- SpiceJet
Karvy Stockbroking has maintained an ‘outperformer’ rating on SpiceJet, with a price target of Rs 16 in the wake of a fall in aviation fuel prices.
CMP: Rs 12.55
Target price: Rs 16
Karvy Stockbroking has maintained an ���outperformer��� rating on SpiceJet, with a price target of Rs 16 in the wake of a fall in aviation fuel prices.
���Lower ATF prices would lead to fall in airfares and that in turn would stimulate air travel. ATF prices are down by almost 40% from their peak in August 2008. ATF prices have come down to near October 2007 levels but the current airfares are still around 30% higher than airfares prevailing during October 2007,��� the broking firm said in a report.
���However, the general slowdown in the economy is expected to play its role and therefore, even though we expect the passenger traffic to improve, it would still be lower on a YoY basis. On the other hand, we expect the average fares to remain higher by around 30% on YoY basis,��� it added.
Target price: Rs 16
Karvy Stockbroking has maintained an ���outperformer��� rating on SpiceJet, with a price target of Rs 16 in the wake of a fall in aviation fuel prices.
���Lower ATF prices would lead to fall in airfares and that in turn would stimulate air travel. ATF prices are down by almost 40% from their peak in August 2008. ATF prices have come down to near October 2007 levels but the current airfares are still around 30% higher than airfares prevailing during October 2007,��� the broking firm said in a report.
���However, the general slowdown in the economy is expected to play its role and therefore, even though we expect the passenger traffic to improve, it would still be lower on a YoY basis. On the other hand, we expect the average fares to remain higher by around 30% on YoY basis,��� it added.
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