Bernstein upgrades easyJet, Ryanair; says EU airlines are a 'buy'

Bernstein lifted its rating on easyjet and Ryanair on Tuesday, arguing that the largest carriers were unlikely to go bust.

The bank upped easyJet to ‘outperform’ form ‘market perform’ but cut the price target to 1,300p from 1,450p. It also boosted Ryanair to ‘outperform’ from ‘market perform’, cutting the price target to €13.30 from €15.00.

Bernstein reiterated its ‘outperform’ stance on British Airways owner IAG and slashed the price target to 490p from 700p.

The bank noted that the outbreak of the coronavirus and its spread has pushed airline stocks off a cliff, with EU airlines down 38% since the start of the year.

"While the near-term risks are high, we do not see meaningful danger for EU's largest airlines to go bust. Provided the virus is contained by summer and the global economy does not go into a tailspin, EU airlines are a buy," it said.