easyJet: Liberum still on 'hold' after in-line results
(CercleFinance.com) - Liberum maintained its "hold" rating on the easyJet share, with a target price of 1,100 pence, after the British low-cost airline reported "in line" full-year results.
The broker said the results were "as expected" with a minimal deviation from the guidance last updated in early October.
Liberum, however, wrote that headwinds from fuel are set to continue and sees possible concerns about non-fuel cost inflation, adding that it will be difficult for the recent re-rating to go further.
"The recent strong performance of the shares (+38% over the past three months) has been driven almost exclusively by a re-rating rather than earnings revisions," the broker states.
Liberum said that it sees further multiple expansion as unlikely at this stage, bar any uplift from clarity on Brexit and the UK political outlook, and most notably the confirmation of a return to earnings growth in the new financial year.
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.
The broker said the results were "as expected" with a minimal deviation from the guidance last updated in early October.
Liberum, however, wrote that headwinds from fuel are set to continue and sees possible concerns about non-fuel cost inflation, adding that it will be difficult for the recent re-rating to go further.
"The recent strong performance of the shares (+38% over the past three months) has been driven almost exclusively by a re-rating rather than earnings revisions," the broker states.
Liberum said that it sees further multiple expansion as unlikely at this stage, bar any uplift from clarity on Brexit and the UK political outlook, and most notably the confirmation of a return to earnings growth in the new financial year.
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.