Norwegian downgrade probably short-term / News / The Foreigner

Norwegian downgrade probably short-term. HSBC says they have downgraded carrier Norwegian’s stocks following Boeing 787 Dreamliner problems for the carrier. “We have a Neutral recommendation on the stock after having cut our estimates for 2013, which is consistent with some of what the local brokerages have done. This reflects higher fuel prices, which are not secured, the influence of a weaker Norwegian krone, and falling yields”, the banking and financial institution’s Andrew Lobbenberg said to TDN Finance. HSBC added that it is not sure what will happen to Norwegian regarding the winter season, with the company’s challenge from particularly Ryanair, and SAS growth.

norwegiandreamliner, boeing787



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Norwegian downgrade probably short-term

Published on Tuesday, 1st October, 2013 at 09:29 under the news category, by Lyndsey Smith   .
Last Updated on 1st October 2013 at 09:49.

HSBC says they have downgraded carrier Norwegian’s stocks following Boeing 787 Dreamliner problems for the carrier.

787 Dreamliner in Norwegian livery
787 Dreamliner in Norwegian livery
Photo: Atle Straume/Norwegian


“We have a Neutral recommendation on the stock after having cut our estimates for 2013, which is consistent with some of what the local brokerages have done. This reflects higher fuel prices, which are not secured, the influence of a weaker Norwegian krone, and falling yields”, the banking and financial institution’s Andrew Lobbenberg said to TDN Finance.

HSBC added that it is not sure what will happen to Norwegian regarding the winter season, with the company’s challenge from particularly Ryanair, and SAS growth.

Ryanair is focusing on the winter market between Scandinavia and the Canary Islands, which was a very strong market for Norwegian the preceding winter,” continued Mr Lobbenberg.

At the same time, he underlines he believes Dreamliner problems facing Norwegian are only a temporary issue. The company’s two Dreamliners are only a small proportion of Norwegian’s fleet of some 80 aircraft.

“If you take a step back, I think the Dreamliner has been the most successful long distance flight programme ever so far. There are many problems at the moment, but I expect that it [the situation] will resolve itself eventually,” Mr Lobbenberg remarked.

“People have short memories. The mood will turn if the push is given two weeks without bad news.”




Published on Tuesday, 1st October, 2013 at 09:29 under the news category, by Lyndsey Smith   .
Last updated on 1st October 2013 at 09:49.

This post has the following tags: norwegiandreamliner, boeing787.





  
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