Ryanair: Oddo adjusts estimates and target
(CercleFinance.com) - Oddo has confirmed its buy rating on the Ryanair stock, trimming its target price from 21 euros to 20 euros.
The broker believes that the fears regarding pilots are now a thing of the past, and it believes that Ryanair will benefit from the acceleration of sector concentration in Europe and will be able to compensate for the inflation of staff costs.
Ryanair yesterday published results that were in line with Oddo's estimates and the consensus, reporting earnings of 1,450 million euros (vs. Oddo BHF(e): 1,455 million euros, Consensus: 1,448 million euros), up 10%, with a net margin of 20.3%. Free cash flow came to 763 million euros, against the consensus of 660 million euros.
Oddo stresses that in fiscal year 2019, the company has adopted a very cautious or even pessimistic stance, expecting its FY 19 net income to fall to 1.25 billion-1.35 billion euros.
The broker has adjusted its estimate for net income group share by -4.7% to 1,438 million euros for FY2018-19.
Copyright (c) 2018 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 believes that the fears regarding pilots are now a thing of the past, and it believes that Ryanair will benefit from the acceleration of sector concentration in Europe and will be able to compensate for the inflation of staff costs.
Ryanair yesterday published results that were in line with Oddo's estimates and the consensus, reporting earnings of 1,450 million euros (vs. Oddo BHF(e): 1,455 million euros, Consensus: 1,448 million euros), up 10%, with a net margin of 20.3%. Free cash flow came to 763 million euros, against the consensus of 660 million euros.
Oddo stresses that in fiscal year 2019, the company has adopted a very cautious or even pessimistic stance, expecting its FY 19 net income to fall to 1.25 billion-1.35 billion euros.
The broker has adjusted its estimate for net income group share by -4.7% to 1,438 million euros for FY2018-19.
Copyright (c) 2018 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.