Shares of SpiceJet climbed over 2 percent in early trade on BSE on February 25 but cooled off soon after HSBC upgraded the stock to buy from hold, but cut the target price to Rs 110 from Rs 115.
The global financial management firm cut SpiceJet's FY20 forecast sharply following softness in yield.
"We forecast a net loss of Rs 48.4 crore from a profit of Rs 360 crore. For FY21, we cut the forecast to Rs 310 crore from Rs 390 crore and believe the path to recovery looks clearer hereon," said HSBC.
HSBC is of the view that the return of the 737 Max should improve sentiment and the company's cost structure.
As per media reports, the company is going to launch 20 new domestic flights from March 29 as it is going to introduce UDAN flights on Amritsar-Patna and Varanasi-Patna routes.
The new flights are going to connect Guwahati with Patna, Hyderabad with Mangaluru, Bengaluru with Jabalpur and Mumbai with Aurangabad.
The company is going to deploy a mix of Bombardier Q400, B737 for these flights.
SpiceJet has reported a 21 percent jump in its Q3FY20 consolidated net profit at Rs 77.9 crore against Rs 64.4 crore in the same quarter last fiscal.
Revenue of the company was up 46.9 percent at Rs 3,656.3 crore against Rs 2,488.5 crore.
Earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) stood at Rs 761.6 crore.
Around 09:45 hours, the scrip was 0.46 percent up at Rs 87 on BSE.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.