EasyJet: Stifel maintains its recommendation on the share
(CercleFinance.com) - Stifel maintains its buy rating on easyJet shares, with an unchanged target price of 650 pence.
The analyst reports that the pre-tax loss for the 2023 financial year came out at £455 million, in line with preliminary data.
The broker believes, however, that the Middle East conflict means that there will be no year-on-year improvement on the seasonal first-quarter loss, but that the second quarter appears to be unaffected.
Stifel believes that medium-term targets are 'rather optimistic', with pre-tax profit per passenger of 7 to 10 pounds (Stifel expects 5 pounds).
Finally, the analyst points out that the stock is still "valued at historically low levels", and believes that the market is focusing too much on a potential weakening in demand, overshadowing the current strength of prices and earnings.
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