(Bloomberg) — After rising more than 500%, Turkey’s national carrier has been the biggest contributor to the country’s biggest stock market rally this year. And its president does not see the gains stopping there.
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Turk Hava Yollari AO, or Turkish Airlines as the company is known internationally, is aiming for its shares to hit $10 (around 180 lira), Ahmet Bolat told a group of reporters in Miami, 50% above the stock price. Wednesday closing. He did not give a time frame for the goal, according to an article in the Milliyet newspaper.
Turkish Airlines provided the biggest push at this year’s 172% gain in the Borsa 100 index, which is the world leader in local currency and dollar terms. Its 523% increase is also the highest among global airlines.
The stock was inflated as Turkey’s falling currency added to the country’s appeal as a top destination for foreign travellers. According to the state-run Anadolu agency, Turkey is aiming for $50 billion in tourism revenue next year, up from $41 billion forecast for 2022. That, coupled with a freight boom, has bolstered optimism that Turkish will return. Airlines at previously seen capacity levels. the pandemic.
According to Bolat, the carrier aims to double the number of US passengers visiting Turkey to 2 million, making the country the second largest destination for US citizens, after the UK.
Turkey’s 80% stock market rally fuels world’s best gains in 2022
Analysts agree with the president, whose target for the stock is above the average price target of 145.57 lira, or $7.81.
For Erdem Kayli of Teb Investment, Turkish Airlines has a potential return of around 50% over a 12-month horizon, “thanks to a solid cash flow and a significant drop in debt”.
At ICBC Turkey Investment, analyst Burak Isyar believes passenger traffic will remain strong throughout the first quarter of 2023, although growth slows from this year’s pace. Beyond March, the stock could start pricing in uncertainties such as elections in Turkey and the likelihood of a recession in Europe, he said.
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