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Ryanair fancied ahead of ‘make or break’ summer - UBS analyst

Ryanair and EasyJet are among the Swiss bank's 'buy' stocks in the airline sector, which has overall "performed negatively".

Ryanair
Ryanair shares were on the front foot on Thursday

Ryanair Holdings PLC (LON:RYA) is named among the ‘buy’ recommendations of UBS which sees the summer (the third quarter) as a “make or break” period for the airlines.

“The European Airline sector has performed negatively (Eurotop 300 is flat vs the MSCI EU airlines down c2%) due to negative earnings momentum,” said analyst Jarrod Castle.

“However, if summer delivers despite oil price increase we think the airlines can still end the year in positive territory.”

READ: Ryanair warns on further staff disruptions, lower fares and Brexit uncertainty

UBS, in a statistical analysis of the sector, highlighted that data suggests that long haul capacity across the sector will grow in the third quarter by 7.5%, while short haul will increase by 4.5% - and that both figures are below market expectations.

At the same time, the data from airlines covered by UBS suggests 4.4% average growth.

Ryanair and easyJet Plc (LON:EZJ) are among the few fancied names at UBS, both are rated as ‘buys’ - the former carries a €18.50 price target and the latter’s target is set at 1,800p.

In Thursday’s deals, Ryanair shares gained 0.96% to trade at €15.80 and easyJet advanced 1.21% to 1,678p.

Quick facts: Ryanair Holdings plc

Price: 10.965 EUR

LSE:RYA
Market: LSE
Market Cap: €11.95 billion
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