Dubai – Mubasher: MubasherTrade raised the price target (PT) of Dubai-listed Air Arabia by 36% from AED 1.67 to AED 1.80, with a “Buy” recommendation.
Air Arabia will buy five additional Airbus A320 aircrafts which cost $485 million, the research firm said, adding that such aircrafts will be put into service as of Q2-17.
Expansion of the airline’s capacity and network will continue to create value.
MubasherTrade expected four out of the seven aircrafts will be added in 2017 and the remaining three in 2018.
The airline posted net profits of AED 542 million in the first nine months of 2016, a rise of 15% from AED 472 million in the same period of 2015, according to the research firm.
Air Arabia’s stock declined 0.75% to AED 1.32 on Wednesday.
