Turk Hava Yollari (THYAO TI) TI
Industrials
Reno Bianchi has long opined that Turkish Airlines has withstood the pandemic pressures better than most other global airlines. Recent results unequivocally support this theory. This has not gone unnoticed in the equity market as its ADRs are up more than 200% YTD. However, the fixed income market has been seemingly indifferent to the airline’s substantial operating and financial progress. THYAO 4.2% due 2027 continues to trade at a deep discount to par. Reno maintains his Overweight recommendation on the airline’s only EETC tranche and would not hesitate to pay considerably more than Bloomberg’s current quote price.
Edition: 148
- 11 November, 2022