Citigroup maintains 'sell' rating on Jet Airways
Citigroup (Asia-Pac) has maintained its 'sell' rating on Jet Airways, as it believes volatile macro factors (oil and F/X) to contribute to the uncertain outlook of a highly financially leveraged sector.
By ET Bureau |
CMP: Rs 245.25
Target price: Rs 174
Citigroup (Asia-Pac) has maintained its ���sell��� rating on Jet Airways, as it believes volatile macro factors (oil and F/X) to contribute to the uncertain outlook of a highly financially leveraged sector.
The brokerage, however, has marginally increased its target price for the stock to Rs 174 from Rs 167. ���We view that Jet���s management is taking the correct measures of: a) leasing of surplus aircraft, non-renewal of expired leases, b) rationalisation of network, and c) cutting manpower and other overhead costs. These, coupled with lower oil costs (compared to one year ago), imply Jet���s operating profitability will improve significantly over FY10E-FY11E,��� the Citi note to clients said.
The brokerage is of the view that Jet���s operating cash losses will continue into FY10E and that it will need to raise fresh funds to refinance debt repayment.
Target price: Rs 174
Citigroup (Asia-Pac) has maintained its ���sell��� rating on Jet Airways, as it believes volatile macro factors (oil and F/X) to contribute to the uncertain outlook of a highly financially leveraged sector.
The brokerage, however, has marginally increased its target price for the stock to Rs 174 from Rs 167. ���We view that Jet���s management is taking the correct measures of: a) leasing of surplus aircraft, non-renewal of expired leases, b) rationalisation of network, and c) cutting manpower and other overhead costs. These, coupled with lower oil costs (compared to one year ago), imply Jet���s operating profitability will improve significantly over FY10E-FY11E,��� the Citi note to clients said.
The brokerage is of the view that Jet���s operating cash losses will continue into FY10E and that it will need to raise fresh funds to refinance debt repayment.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
