logo-loader

EasyJet and Ryanair to fly high, says broker

Last updated: 06:09 07 Nov 2013 EST, First published: 07:09 07 Nov 2013 EST

no_picture_pai

City broker Liberum has initiated coverage of the airlines sector with ‘buy’ recommendations on the budget carriers. 

It reckons easyJet (LON:EZJ) is worth £15 a share and has set a €6.40 price target for Ryanair (LON:RYA).

On the travails of the latter, Liberum told clients: “Expectations of Ryanair producing its usual guidance-busting performance have been reined in by two profit warnings in quick succession. 

“However, we believe the underlying fundamentals of the business remain attractive and intact, despite management admitting the need to catch up with easyJet in certain areas.”

Shares in both companies were off slightly in early afternoon trade. However they have enjoyed a decent run in the year to date, with Ryanair up 18% (in spite of its recent setbacks) and easyJet ahead 58% over last 10 months.

Liberum  said of easyJet: “The traditionally weak winter season is looming, and the economic backdrop remains unhelpful. 

“However, we see clear opportunities for easyJet to continue to drive structural improvements in unit revenues and unit costs that ought to see it make further progress.” 


Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

4 hours, 26 minutes ago