Ryanair: 'end of a downgrade cycle?' UBS wonders
(CercleFinance.com) - UBS confirms its buy rating on the share of the Irish low cost airline, Ryanair, which yesterday published its Q3 2018/2019 results.
The broker has trimmed its 12-month target price from 16.75 euros to 16 euros, although even reduced, this suggests upside potential of over 40%.
"Although Ryanair maintained its 2019 net income guidance of E1-1.1bn it remains cautious on fare and capacity outlook for the remainder of 2019 and for 2020," the broker says in its report.
That being said, Lauda's integration is improving and UBS says, "We continue to forecast breakeven for Lauda in 2020," which expects Ryanair to report EPS of 1.08 euro in 2019/2020, after 0.97 euro in 2018/2019.
The main catalysts include an improvement in the tariff outlook, while the comparison basis in this area is improving, while there is stability in non-fuel costs, growth in volumes, along with the aforementioned break-even reached by Lauda.
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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 has trimmed its 12-month target price from 16.75 euros to 16 euros, although even reduced, this suggests upside potential of over 40%.
"Although Ryanair maintained its 2019 net income guidance of E1-1.1bn it remains cautious on fare and capacity outlook for the remainder of 2019 and for 2020," the broker says in its report.
That being said, Lauda's integration is improving and UBS says, "We continue to forecast breakeven for Lauda in 2020," which expects Ryanair to report EPS of 1.08 euro in 2019/2020, after 0.97 euro in 2018/2019.
The main catalysts include an improvement in the tariff outlook, while the comparison basis in this area is improving, while there is stability in non-fuel costs, growth in volumes, along with the aforementioned break-even reached by Lauda.
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.