easyJet’s analyst price target has been reduced from 600 GBp to a range of 400 to 535 GBp, as analysts cite continued competitive pressures and higher costs as key factors behind the change.
Analyst Commentary
Recent analyst reports highlight a diverse range of perspectives on easyJet’s outlook, resulting in a spread of price targets and ratings. These views reflect ongoing debates regarding the airline’s financial trajectory and market positioning amid evolving sector dynamics.
Bullish Takeaways
- Bullish analysts continue to recognize easyJet’s established market presence as a positive factor supporting its medium-term valuation.
- Some price targets remain above 500 GBp. This indicates confidence in the company’s ability to stabilize margins despite industry headwinds.
- Retention of neutral or hold ratings suggests expectations that the airline’s operational execution could improve over time. This may support further upside potential should demand recover.
Bearish Takeaways
- Bearish analysts caution that continued competitive pressures may constrain easyJet’s near-term growth prospects and earnings power.
- Recent initiation with an underweight rating reflects concerns about rising costs, which could further weigh on profitability.
- Downward adjustments to price targets this quarter indicate skepticism about a swift rebound in valuation. The operating environment remains challenging.
What's in the News
- Citi has reduced easyJet's price target to 520 GBp from the previous 600 GBp and is maintaining a Neutral rating for the airline (Citi).
- Morgan Stanley has initiated coverage on easyJet with an Underweight rating and has set a price target of 400 GBp. The firm cited ongoing competitive pressures and rising costs as major challenges in the near term (Morgan Stanley).
Valuation Changes
- Fair Value estimate remains unchanged at £6.26 per share.
- The Discount Rate has risen slightly, moving from 10.22% to 10.40%.
- The Revenue Growth projection remains stable at 7.79%.
- The Net Profit Margin is unchanged, staying at 4.86%.
- The future P/E ratio has increased slightly from 10.8x to 10.86x.
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