IndiGo share price hits 52-week high. Will it rise more? Should you buy or not?

IndiGo share price: The share price of IndiGo gained over 2% to hit a 52-week high today (March 26). This comes after global brokerage firm UBS raised the target price on the stock and maintained its positive stance citing strong growth prospects of Indian aviation industry, share gains in international travel, efficient cost structure and operational excellence.

IndiGo share price

IndiGo shares rallied 2.13% to a fresh high of Rs3,355.50 apiece on the BSE.

What UBS said on IndiGo share price?

Maintaining a Buy rating on IndiGo shares, UBS raised the 12-month target price to ₹4,000 per share from ₹3,900 earlier. This implies an upside of more than 21% from Friday’s closing price.

“Despite factoring in higher crude prices and pilot salaries, our estimates are flat to higher, driven by better Available Seat Kilometres (ASK) growth and yields. Also, we continue to see upside risks to our yields in the near term and capacity/ demand growth and profitability over the medium term,” UBS noted.

UBS also said that the near-term trends remain positive and should lead to consensus estimate upgrades as the company indicated strong demand.

“ASK growth of low double-digit in FY25 with near-term YoY yield growth is positive in our view and should result in strong near-term earnings. Also, AOG number should remain stable at the current level (we were expecting more aircrafts to be grounded soon), provides much better visibility/ stability to capacity/ earnings,” UBS said.

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