Shares of Interglobe Aviation, the parent firm of IndiGo airlines, jumped nearly 3% on Thursday.

What Happened: Jeffries has upgraded the company anticipating a positive performance from IndiGo in the coming quarters.

Jefferies has upgraded the airline's rating to "buy" and raised the target price to ₹5,225. The company's operating performance has consistently surprised in the past 12-18 months, the brokerage said. 

The brokerage said the currently unstable situation in the industry has worked in favour of the airline, helping to keep yields at healthy levels. It added that recent efforts to increase supply have gained momentum, contributing to the overall stability and growth in the market.

Jefferies raised the company's earnings per share estimates for FY26-27 by 6%-7%.

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HSBC also has a "buy" recommendation for IndiGo with a target price of ₹5,165. The launch of business class has ended Vistara and Air India‘s monopoly in the area, the brokerage said. 

This move will likely help capture more corporate traffic and improve the budget carrier’s market position. The loyalty program, extensive network and strong corporate market share could also support the success of the premium product. However, the launch of business class may not immediately boost profit margins, the brokerage noted.

Earlier this month, IndiGo introduced business-class services with the launch of IndiGo Stretch. The services will begin in November and will initially cater to only metro cities. The low-cost carrier aims to expand the service to other routes by 2025. 

Price Action: InterGlobe Aviation was trading 2.79% higher at ₹4,420 on Thursday morning.

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