Canaccord Genuity reviews stance on Jet2 following equity placing
Analysts at Canaccord Genuity have kept their rating and target price for low-cost leisure airline Jet2 under review following the group's successful equity placing.
Canaccord said on Monday that proceeds from Jet2's £422.0m equity raise should allow the company to navigate the "highly challenging market environment" and also allow management to continue to take longer-term strategic decisions to support long-term profit growth.
"It will likely also allow the group to emerge from the pandemic in a stable commercial position to capitalise on the upturn opportunities when they arrive," highlighted the analysts.
Additionally, the Canadian bank noted that Jet2's proven operating model and strong track record, excellent brands and customer loyalty, would also likely allow it to "prosper" going forward and drive shareholder value.
"Our forecasts, PT and recommendation remain under review until there is greater clarity in terms of the impact and duration of the Covid-19 pandemic," concluded Canaccord.