EasyJet flies higher as BofA Merrill Lynch reiterates 'buy' rating
EasyJet rallied on Friday after Bank of America Merrill Lynch reiterated its ‘buy’ rating on shares of the budget airline.
BofA said easyJet struck a bullish tone on the outlook for summer in its earnings call on Thursday. It pointed out that summer bookings have trended at 13% above 2019 levels for the past 10 weeks, with yields up 15% versus two years ago.
"This is the strongest yield increase highlighted by a European airline since the beginning of the pandemic, and above our expectations," Bank of America said.
It lifted its FY22 pre-tax profit estimate to £100m from breakeven, as it took into account higher loads over the summer quarter.
The bank also highlighted a strong balance sheet, which supports potential growth, and said easyJet was well positioned to benefit from a strong recovery in European leisure travel.
At 1440 BST, the shares were up 4.1% at 523.20p.