Ryanair: Liberum sticks to 'buy'

(CercleFinance.com) - Analysts' firm Liberum reacts this morning to Ryanair's lowering of its traffic forecasts.
The 'low-cost' airline cites delays in the delivery of the Boeing 737 Max. The 'buy' guidance remains in place, as well as the target price of 12.5 euros.

Ryanair estimates that in summer 2020, its fleet will comprise only 30 B737 Max rather than 58, a fall in its forecasting capacities, leading to a lowering of its growth plans. This should be supportive for unit revenues for the group, but postpones the savings expected from the B 737 Max.

Ryanair also intends to cut non-profitable routes from this winter as well as bases, which according to Liberum could be interpreted as a sign of weakness in the air transport market. All this being said, the Ryanair share deserves its market leader status according to the analysts, who consider any weakness as a buying opportunity.

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