Brokerages ramp up Jet Air's target price

Moneycontrol Bureau

The much awaited Jet Airways--Etihad deal is concluded thereby ending the eight month long wait. Analysts seem upbeat on the deal which will not only help Jet Air reduce debt by a fourth, but will also represent an attractive exit for investors if the deal goes through smoothly. The transaction is also touted as a game-changing opportunity for Jet Air as it will help the airline route 30 percent of its capacity from Abu Dhabi where getting access has been a tough task for global carriers.

This is what brokerages feel about the deal

Kotak Securities
Has increased target price to Rs 550/share  from the earlier Rs 400. The brokerage states, if the deal goes through smoothly it will represent an attractive exit for investors. However, the firm sees no upside from the current levels in next 2-3 years

IIFL
Has a buy on Jet stock with a target price of Rs 790. The deal will bring down debt significantly from the current Rs 11600 crore. Also, the deal will be EPS accretive by  around 6 percent in FY14. Jet Air will expand international business significantly due to code sharing, it said.

CITI
Has upgraded stock to 'buy' by raising target price to Rs 766. The firm says the deal will immediately give Jet access to USD 450 million to retired debt by a fourth. The deal will boost Jet's global operations.

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