NAS: Preference For Short Haul And Leisure Will Support Strong September Results

Norwegian Air Shuttle's price target was raised by analysts from NOK 17 to NOK 17.75. This reflects improved sentiment around the airline's strong positioning in short haul and leisure travel heading into the September quarter results.

Analyst Commentary

Analyst perspectives on Norwegian Air Shuttle ahead of its September quarter results highlight both optimistic and cautious viewpoints regarding the airline's valuation and prospects.

• Bullish analysts are increasingly positive on Norwegian Air Shuttle's outlook in the short haul and leisure segments. These are seen as key drivers of revenue growth.
• The recent price target increase signals growing confidence in the airline's ability to execute on its strategic priorities and capitalize on travel demand trends.
• There is a belief that Norwegian Air Shuttle is better positioned relative to airlines with higher exposure to long haul travel. This supports a more favorable valuation.
• Improved cost discipline and network adjustments are anticipated to enhance the company’s operational performance over the coming quarters.

• Bearish analysts remain cautious about the broader competitive environment in European aviation, which could put pressure on fares and margins.
• Ongoing macroeconomic uncertainty may impact consumer travel behavior, posing risks to Norwegian Air Shuttle's passenger volumes.
• There is some concern about fuel cost volatility and its potential to negatively affect profitability, despite recent upbeat sentiment.

What's in the News

• Norwegian Air Shuttle is expanding its Boeing order by exercising the option to purchase 30 additional Boeing 737 MAX 8 aircraft. This brings the total firm order to 80 aircraft and extends deliveries through 2031. This move supports fleet modernization and cost efficiency. (Key Developments)
• The company reported operating results for the month and twelve-month period ended September 2025, showing increases in ASK, RPK, load factor, and total passengers compared to the previous year. (Key Developments)
• A Special/Extraordinary Shareholders Meeting is scheduled for November 20, 2025, with agenda items including the election of a chair for the meeting and approval of the agenda, as well as election of the chair of the board of directors. (Key Developments)

Valuation Changes

• Fair Value: Remains unchanged at NOK 18.17, reflecting stable medium-term expectations for the airline's intrinsic worth.
• Discount Rate: Has decreased slightly from 9.83% to 9.67%, indicating a modest reduction in perceived risk or cost of capital.
• Revenue Growth: Holds steady at approximately 5.77%, suggesting consistent expectations for top-line expansion.
• Net Profit Margin: Unchanged at around 5.82%, showing no major revisions to anticipated profitability levels.
• Future P/E: Marginally decreased from 12.08x to 12.03x. This signifies a small shift toward greater value for earnings projected ahead.