SpiceJet shares rise over 7% after falling for six straight sessions; heres why
SpiceJet share price: At the time of filing the report, SpiceJet shares traded 7.66 per cent higher at Rs 26.01 apiece on the BSE.
SpiceJet share price: SpiceJet shares soared nearly 8 per cent on Wednesday, May 24, snapping the six-day losing streak. Positive announcements such as bringing back four of 25 grounded aircraft by June 15, and the announcement of a second pay hike for pilots in seven months, aided the stock.
At the time of filing the report, SpiceJet shares traded 7.66 per cent higher at Rs 26.01 apiece on the BSE.
SpiceJet shares were under pressure for the last six days as there were concerns about aircraft lessor seeking initiation of insolvency resolution proceedings, but the announcement of bringing back grounded aircraft gave some respite to the investors.
Brokerages' views
Nuvama has maintained a ‘hold’ call on shares of SpiceJet for a target price of Rs 40 apiece.
“Given the lack of transparency for investors, transfer of the cargo business, replacement of cheap Boeing planes, inability to raise funds, and weak balance sheet, we cut FY23E/24E EBITDAR by 6 per cent/ 9 per cent,” the brokerage said.
SpiceJet share price history
SpiceJet shares have lost over 33 per cent of their value in 2023 so far, a period in which the Nifty headline index has risen about one per cent.
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