SpiceJet share price dips 2% after HSBC cuts target price
According to the research house the subdued yield and cost pressure are the risk for H2 profitability.
November 27, 2019 / 10:08 AM IST
SpiceJet share price declined 2 percent intraday on November 27 after foreign research house HSBC has cut the target price but maintained hold rating.
HSBC has cut target to Rs 115 from Rs 130 per share as the Q2 result failed to meet Street expectations.
According to the research house, the subdued yield and cost pressure are the risks of H2 profitability.
It also cut FY20 profit estimate by 27 percent and feels that the 737Max returning to operations by March could benefit the company.
At 09:56 hrs SpiceJet was quoting at Rs 105.60, down Rs 0.25, or 0.24 percent on the BSE.
The share touched its 52-week high Rs 156.90 and 52-week low Rs 72 on 03 June 2019 and 10 December 2018, respectively.
Currently, it is trading 32.7 percent below its 52-week high and 46.67 percent above its 52-week low.