Ryanair: Liberum still a buyer, despite cancellations.
(CercleFinance.com) - Liberum has confirmed its "buy" rating on Ryanair, with its target price of 21 euros, even after the low cost Irish airline's decision to cancel about 2% of its flights over the next six weeks to improve its operational reliability.
The broker understands that Ryanair is suffering from a lack of drivers, exacerbated by other sources of operational disruption, and only sees a modest adverse financial impact stemming from reimbursed tickets and compensation costs.
However, assuming that the problem can be rectified, this should not impact the group's long-term fundamentals, the broker says. It is therefore only reducing its forecasts by less than 5%, adopting the lower end of the target range provided by management.
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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.
The broker understands that Ryanair is suffering from a lack of drivers, exacerbated by other sources of operational disruption, and only sees a modest adverse financial impact stemming from reimbursed tickets and compensation costs.
However, assuming that the problem can be rectified, this should not impact the group's long-term fundamentals, the broker says. It is therefore only reducing its forecasts by less than 5%, adopting the lower end of the target range provided by management.
Copyright (c) 2017 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.