IndiGo share price hits 52-week high as UBS remains bullish, raises target price on stock

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₹3,355.50 apiece on the BSE. UBS maintained its positive stance on IndiGo considering the strong growth prospects of the Indian aviation industry, share gains in international travel, efficient cost structure and operational excellence. It maintained a Buy rating on IndiGo shares and raised the 12-month target price to ₹4,000 per share from ₹3,900 earlier, implying an upside of more than 21% from Friday’s closing price.

The brokerage firm continues to value Indigo at 11x FY26E EV/EBITDA. Also Read: Ashok Leyland share price gains 2% on announcement of interim dividend of ₹4.95 per share “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 said in a report.

InterGlobe Aviation, the operator of Indigo Airlines, is India’s largest commuter airline, with a domestic capacity share of 55% in FY23. The company remains bullish on long-term growth for the air travel industry in India and expects Indian air travel, domestic as well as international, to grow at a strong 15% CAGR over FY24-30. Strong focus on international expansion continues and the company as well as Indian regulators believe India can become an important global hub for international-to-international travel.