CLSA upgraded Jet Airways to "buy" from "sell", and raised its target price to 500 rupees from 290 rupees, citing the airline's "strong" passenger yield environment, focus on route rationalisation on its international routes and "tight" cost control.
"Given the improved performance in international and cost discipline in domestic (routes), we now expect improved profitability over FY13-14, driving significant upgrades.
Continuing strength in operating performance and debt reduction leaves room for upside," CLSA writes in a note dated on Tuesday.
Jet Airways posted a surprise quarterly profit on Friday, raising hope the worst is over for Indian carriers.
Jet shares were last up 1.7 percent.