easyJet: Oddo confirms reduce rating

(CercleFinance.com) - easyJet will issue a "pre close statement" for its annual results to 30 September 2019, on Tuesday 8 October.


Prior to this publication, Oddo confirms its Reduce rating on the share, with a target price of 1,050p (about 9% downside potential, based on DCF model and a normative valuation). The broker believes that the share remains more sensitive to shocks on demand (Germany and UK) given a cost structure that is less flexible than its peer Ryanair.

Oddo expects 2019 PBT, before non-recurrent items of 404 million pounds, below the FactSet consensus of 418 million pounds, which incorporates i/ a decline in unit revenues - excluding FX factors - of -0.8% in H2, including -1.4%e in Q4, ii/ a decrease in unit costs before non-recurrent items, fuel and FX factors of 2% (less disruption, less wet lease ...) and iii/ a fuel bill of 1,380 million pounds.


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