Shares of InterGlobe Aviation (IndiGo) gained altitude on Tuesday on the back of bullish commentary by analysts. Kotak Institutional Equities (KIE) upgraded the stock from ‘sell’ to ‘buy’ and increased its fair value assessment from Rs 900 to Rs 1,520.
Shares of IndiGo shot up as much as 6 per cent before ending just 2.1 per cent higher at Rs 1,255 amid volatility in the secondary market.
“We expect pressures on cost and yield to recede for the aviation sector beyond a tough FY21, IndiGo to re-establish its lead over peers in terms of spread, and the firm to continue driving double-digit growth for air travel for long,” said KIE analysts Aditya Mongia and Teena Virmani.
