Jefferies views IndiGo as unique and strong franchise, raises target price to Rs 5,260

The IndiGo stock has underperformed following a significant miss in the companys 2Q results, driven by higher costs impacting profitability. However, Jefferies expects cost normalization in the future, viewing the factors behind the higher costs in 2Q as temporary. The brokerage anticipates a return to more typical cost levels, which could improve the companys performance moving forward.