Wednesday, April 10, 2019

Edelweiss downgrades Jet Airways on 'mounting risk'

Mumbai: Brokerage firm Edelweiss on Tuesday downgraded the Jet Airways stock from from 'hold' to 'reduce' owing to the mounting risk on the financially troubled airline.

The report said that Jet may eventually lose 50 planes to lessors which would cut its fleet size down to 73 in the financial year 2020-2021.
The brokerage firm also cut Jet's target price(TP) by 22 per cent to Rs 177 and also the full service carrier's earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) forecast by 35 per cent for the current fiscal, and by 49 per cent for the financial year 2020-2021.

"We continue to assume a swerve back to profit during FY21E and a fair EV/EBITDAR of 7x. But given mounting risk, we are cutting the TP by 22 per cent to Rs 177 and downgrading the stock from 'HOLD' to 'REDUCE'," Edelweiss said.
09/04/19 IANS/Business Standard