Angel Broking is bullish on SpiceJet and has recommended buy rating on the stock with a target of Rs 65 in its June 19, 2010 research report.
"We believe that SpiceJet is well placed to benefit from a reviving economy, which has led to an increase in passenger traffic demand, and which is expected to remain robust over FY2010-12E. Moreover, the company expects to add four aircraft in the current fiscal, which will further bolster revenues for the year. Going forward, SpiceJet's market share is expected to increase as the company's peers Kingfisher and Jet Airways are unlikely to expand in FY2011-12E due to losses during FY2010. At Rs 55, the stock is trading at 10.9x FY2011E and 7.6x FY2012E Earnings. We recommend a buy on the stock, with a target price of Rs 65, valuing the stock at 9x FY2012E Earnings of Rs 7.2," says Angel Broking research report.
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