Norway: Siltanews – News Desk
On Monday, Barclays (LON:BARC) analysts altered their stance on Norwegian Air Shuttle ASA (OL:NAS:NO) (OTC:NWARF), downgrading the airline’s stock rating from Overweight to Equal weight while maintaining a price target of NOK 14.00 The adjustment in rating reflects a mixed perspective on the company’s future financial performance.
Barclays pointed out several factors influencing their decision. On the positive side, they noted healthy demand for air travel and potential synergies with Wide roe, a regional airline in which Norwegian Air recently increased its stake Additionally, the analysts recognized the benefits of falling fuel costs and a weakening U.S. dollar.
However, these positives were balanced against concerns, including rising non-fuel costs and skepticism regarding the airline’s restructuring plan. The analysts raised their earnings estimates for the fiscal year 2025 but lowered them for 2026 and 2027.
This recalibration of expectations led to the maintained price target of NOK 14.00, which is close to the stock’s current trading price.
The Barclays analysts also outlined scenarios that could alter their outlook on the stock. They indicated that their assessment could become more or less favorable based on the actual execution and effectiveness of Norwegian Air’s profit improvement plan, fluctuations in yields, and changes in fuel prices and currency exchange rates between the Norwegian krone and the U.S. dollar.
Norwegian Air Shuttle ASA has been navigating a challenging period, with the airline industry still recovering from the impacts of the global pandemic. The company’s efforts to improve profitability through restructuring and cost management are critical to its future success.