Ryanair: Oddo BHF cuts target price
(CercleFinance.com) - This morning an analyst at Oddo BHF announced that he is reducing his target price for the Ryanair share, the day after the share's sharp (-12%) fall - which is still "exaggerated" Oddo BHF says, considering the strength of the airline's business model and the expected improvement in capacity.
Indeed, Oddo BHF has cut its 2018/19 guidance by 12%, related to a reduction in traffic, pressure on fares resulting from the announcement of strikes, an increase in the fuel bill and a level higher of compensation that has been mainly driven by disruptions stemming from actions taken by air traffic controllers.
However, the analyst notes that although strikes are weighing on prices, discussions are ongoing with the unions, to the point of reaching a reduction in pressure in the summer season.
In the end, Oddo BHF is maintaining its buy rating on the Ryanair stock, having trimmed its target price from 18 euros to 17 euros.
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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.
Indeed, Oddo BHF has cut its 2018/19 guidance by 12%, related to a reduction in traffic, pressure on fares resulting from the announcement of strikes, an increase in the fuel bill and a level higher of compensation that has been mainly driven by disruptions stemming from actions taken by air traffic controllers.
However, the analyst notes that although strikes are weighing on prices, discussions are ongoing with the unions, to the point of reaching a reduction in pressure in the summer season.
In the end, Oddo BHF is maintaining its buy rating on the Ryanair stock, having trimmed its target price from 18 euros to 17 euros.
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.