Norwegian Air Shuttle shares down as Goldman Sachs keeps 'conviction sell'

Norwegian Air Shuttle Profile

In a note to investors, Goldman stated it is reiterating its sell recommendation while lowering its price target to NOK85 from NOK95 to reflect lower earnings estimates.

Goldman stated "Norwegian is unhedged on fuel and although the USD/NOK crown rate has moved in its favour, we estimate it is facing an increase of 20% in its fuel bill (excluding growth) in 2008 versus 2007."

On top of this, Goldman also stated it now believes Norwegian Air Shuttle looks expensive compared to its peers, and that "growth is a negative at the current oil price".

Date posted: 01-Apr-08

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• Norwegian Air Shuttle: losses narrowed in 1Q09; business slow down forecast for 2009
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