Update shared on 22 Oct 2025
Fair value Decreased 2.41%Analyst Commentary Highlights Slightly Lowered Price Targets and Mixed Outlook for easyJet
Narrative Update: Analyst Price Target Shift for easyJet
Analysts have slightly reduced their fair value price target for easyJet from £6.46 to £6.30. They cite ongoing headwinds from competitive pressures and rising costs as key factors behind the adjustment.
Analyst Commentary
Industry experts have weighed in with updated perspectives on easyJet's outlook. The latest research highlights differing views regarding the company's near-term valuation, execution, and growth prospects.
Bullish Takeaways
- Bullish analysts see long-term growth potential as easyJet navigates a challenging market. Cost management efforts are seen as a positive for future margins.
- They believe that easyJet's established brand and network position provide resilience even in a competitive environment.
- Opportunities for operational improvements are cited as potential drivers of future profitability and value recovery.
Bearish Takeaways
- Bearish analysts are cautious about sustained competitive pressures, which could limit easyJet’s ability to raise fares and protect margins.
- Rising operational costs, particularly fuel and labor expenses, are viewed as significant headwinds to short-term earnings growth.
- There is concern that execution risks remain elevated. Profitability improvements are expected to take longer than previously anticipated.
- Downward revisions in price targets reflect market skepticism about near-term valuation upside. Some analysts suggest that easyJet’s shares may underperform relative to the sector in the coming months.
What's in the News
- Morgan Stanley has initiated coverage of easyJet with an Underweight rating and set a 400 GBp price target. The firm cited headwinds from competitive pressures and rising costs (Morgan Stanley research note).
Valuation Changes
- Consensus Analyst Price Target has decreased slightly, moving from £6.46 to £6.30.
- Discount Rate has edged down marginally from 10.94% to 10.83%.
- Revenue Growth projection has declined very slightly from 7.83% to 7.82%.
- Net Profit Margin estimate is nearly unchanged, decreasing insignificantly from 4.86% to 4.86%.
- Future P/E ratio expectations have dropped modestly from 11.35x to 11.05x.
Disclaimer
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