IndiGo shares: Is the worst already in the price? What price targets suggest

InterGlobe Aviation (IndiGo) saw its shares recovering a bit on Friday, as a few targets on the counter suggest the worst may be in the price. In its latest note, Nuvama Research flagged the carrier’s worst operational disruption in years and cut its earnings forecasts, citing mismanagement during the rollout of revised flight duty time limitations. Advertisement

The brokerage said more than 4,500 flight cancellations, acute pilot shortages and a 10 per cent DGCA-mandated cut in the domestic winter schedule created meaningful downside risk to near-term profitability and valuations. While the brokerage hinted at near-term pain, its target of Rs 5,069 on the IndiGo stock suggests downside is limited. On Friday, the scrip was trading 0.95 per cent higher at Rs 4,865 apiece.

HSBC suggeste