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Investing.com - Jefferies upgraded Japan Airlines Co., Ltd (9201:JP) (OTC:JAPSY) from Hold to Buy, raising its price target to JPY4,100.00 from JPY3,100.00 on Monday.
The upgrade reflects Jefferies’ revised assumptions, including an increased international load factor forecast of 85.5%, up from the previous 84.5%. The firm also adjusted its Spring Japan load factor projection to 84% from 79%, though it lowered yield expectations to -2% due to regional competition.
Jefferies trimmed its cargo traffic growth forecast to 12% from 15%, citing weaker China-US e-commerce trends, and revised domestic yield projections from 1% to -1% based on slower business demand recovery. The firm expects Japan Airlines to deliver a dividend per share of ¥92 with potential for share buybacks in fiscal year 2026.
Japan Airlines’ scheduled deliveries of two A350-900 and three A350-1000 aircraft in fiscal year 2026, along with additional fleet expansions in fiscal year 2027 as Boeing recovers production, will likely support available seat kilometer expansion and long-haul capacity, particularly on US routes.
The carrier remains unaffected by PW1100G engine issues that have impacted other airlines and continues to diversify through cargo operations and non-aviation businesses including JALUX and mileage/finance services.
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