easyJet: shares take off after Deutsche Bank upgrade
(CercleFinance.com) - easyJet shares rose by 1.
5% on Friday after Deutsche Bank analysts upgraded their rating on the stock to "buy" from "hold," saying that the airline's situation will improve as demand recovers.
"We find it hard to believe that a crisis from which we expect the ultra-low-cost carriers under our coverage (Ryanair and Wizz) to emerge stronger (...) cannot also be turned to the advantage of a low-cost carrier like easyJet," the broker wrote in a note to clients.
Deutsche Bank in particular cited the company's 55 number one or number two positions in key airports across Europe, seeing significant opportunities for easyJet to improve both its offer and cost base.
The broker also found the stock's valuation attractive, with over 30% upside potential in its new target price of 1,150 pence, from less than half that, at 550 pence previously.
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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.
5% on Friday after Deutsche Bank analysts upgraded their rating on the stock to "buy" from "hold," saying that the airline's situation will improve as demand recovers.
"We find it hard to believe that a crisis from which we expect the ultra-low-cost carriers under our coverage (Ryanair and Wizz) to emerge stronger (...) cannot also be turned to the advantage of a low-cost carrier like easyJet," the broker wrote in a note to clients.
Deutsche Bank in particular cited the company's 55 number one or number two positions in key airports across Europe, seeing significant opportunities for easyJet to improve both its offer and cost base.
The broker also found the stock's valuation attractive, with over 30% upside potential in its new target price of 1,150 pence, from less than half that, at 550 pence previously.
Copyright (c) 2020 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.