Davy Research

Norwegian Air

Norwegian Air - Q2 behind estimates on extra leasing/scaling up costs
Airlines & Other Transport
Norwegian Air

DAVY VIEW

Not for the first time, the main takeaway from Norwegian’s quarterly results is a negative ex-fuel cost surprise — this time down to additional leasing/maintenance and personnel costs. While Norwegian’s rates of growth (30% CAGR since 2005, long haul seeing 60% growth this year and 100% next year) make the scaling process difficult, the continuing scope for negative cost surprises is a concern for investors and will limit the stock’s multiple potential.

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • Norwegian Air

    Closing Price: 21250

  • RATING 01/09/15

  • PREVIOUS RATING 22/01/15

    Underperform

Analyst(S)

COMPANY DATA

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