Tacirler Investment Company Report

Turkish Airlines Ready for Takeoff

We are increasing our target price for THYAO from TL 235.00 per share to TL 428.00 considering the strong 3Q23 operational performance and high pax stats theme. Our 12M target price corresponds to 70% return potential and we remain our BUY recommendation. Fleet expansion and increasing ASK values will be contributing to the operational performance. We expect THYAO to raise its net income by 73% y/y in 2023E and 13% y/y in 2024E. THYAO trades at 4.1x P/E in our 2023E forecasts and 3.6x in our 2024E forecasts.