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.
Cboe ES 35
1,112.04
16:29 28/03/24
Cboe Europe All Companies ex UK
20,722.25
11:45 01/12/20
Cboe Eurozone All Companies
19,062.41
11:45 01/12/20
easyJet
570.80p
16:45 28/03/24
FTSE 100
7,952.62
17:14 28/03/24
FTSE 350
4,383.21
17:14 28/03/24
FTSE All-Share
4,338.05
16:50 28/03/24
International Consolidated Airlines Group Sa
€2.07
16:30 28/03/24
International Consolidated Airlines Group SA (CDI)
176.75p
17:05 28/03/24
Ryanair Holdings (CDI)
€14.41
17:14 17/12/21
Travel & Leisure
7,949.88
17:14 28/03/24
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.