Turbulence ahead for Jet say analysts

New Delhi: Jet Airways is still not completely out of the rough weather, despite steering clear of an 'overvalued' merger deal with Air Sahara, according to analysts.
While Jet's decision to call off the Air Sahara buyout is a positive development, the valuations are still not compelling, a global investment banking major said in its latest research report sent to its institutional customers.
The cost related to the cancellation of the deal would also have an impact on the company's earnings, said the bank, which has maintained its neutral outlook on the company, which was previously downgraded from a positive outlook in January when the deal was signed between Jet and Air Sahara.
Jet's share price has plunged nearly 30% since the deal was signed in January, as most of the market analysts have consistently termed it as an overvalued deal.
25/06/06 Press Trust of India/Business Standard

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