easyJet: Berenberg upgrades stock
(CercleFinance.com) - Berenberg upgraded its rating on low-cost British airline easyJet from "sell" to "hold," citing a "more realastic" outlook after yesterday's warning by the group.
In a note to clients, the German broker - which maintains its target price of 1,040 pence for the share - cites a "clearer view of challenges.
"Management's lowered unit revenue outlook for second-half 2019 appears more realistic compared to its prior bullish commentary," Berenberg wrote.
"The revised outlook aligns with our expectations for shorthaul pricing weakness driven by stubbornly-high capacity growth and slowing demand," it said.
easyJet shares are currently flat at 1,009 pence in London.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a note to clients, the German broker - which maintains its target price of 1,040 pence for the share - cites a "clearer view of challenges.
"Management's lowered unit revenue outlook for second-half 2019 appears more realistic compared to its prior bullish commentary," Berenberg wrote.
"The revised outlook aligns with our expectations for shorthaul pricing weakness driven by stubbornly-high capacity growth and slowing demand," it said.
easyJet shares are currently flat at 1,009 pence in London.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.