(MENAFN- ProactiveInvestors)Fastjet (LON:FJET) is set to take advantage of its first mover position in Africa according to broker Liberum which has set a target three times the current share price. The broker says Africa is the final frontier for mass air travel and has yet to experience either mass air travel or a boom in low-cost airlines. 'Based on current and projected levels of GDP and GDP per capita growth we believe this final frontier is set to be conquered. 'African air travel is forecast to grow faster than the global average with intra-African volumes most suited to low-cost carriers set to grow faster still. 'On a ten-year view we believe it is plausible to expect low-cost airlines to double their share of the intra-African air travel market with the overall market also growing substantially too.' Fastjet's plan is to become a Pan-African carrier with bases in up to six countries. From there it would be able to exploit and stimulate rapid growth in intra-African air travel said the broker. Though currently loss making Liberum sees Fastjet becoming profitable and cash generative from 2016 onwards. Recent results have reflected start-up losses it said while Fastjet has also built central overheads commensurate with a much larger airline and fleet in anticipation of future growth. It forecasts the operating loss shrinking in 2015 a small profit in 2016 and the group turning profitable (at all levels) and cash generative in 2017 when revenues may be near US$500mln. If it meets its forecasts Liberum does not see Fastjet needing to raise any more funds though that may change if it decides to buy rather than lease its fleet as it expands. Liberum has started its coverage with a buy recommendation and target price of 275p. Shares today were little changed at 95.6p.
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