Analysts at Deutsche Bank slightly raised their target price on low-cost carrier Ryanair from €15.3o to €15.50 per share on Tuesday following the group’s first-quarter results.
Deutsche Bank said its revised target price offered roughly 20% upside to the shares, with Ryanair remaining its only ‘buy’ rated European airline.
The German bank also increased its second-quarter fare estimates to 9% above pre-crisis levels given Ryanair’s disclosure that, on average, it was currently tracking ahead of pre-Covid levels by “a low double-digit percentage”.
However, at the same time, DB said it had taken “a more cautious view” on second-half fares, with its analysts now assuming a 4% drop versus pre-Covid, down from the 2% drop it had pencilled-in before, and also updated its fuel and foreign exchange assumptions.
“The result is a 13% increase in our FY23 PAT forecast from €807.0m to €909.0m (compares to Bloomberg consensus at €1.12bn),” said DB.
Reporting by Iain Gilbert at Sharecast.com
