€24.78 - That's What Analysts Think Ryanair Holdings plc (ISE:RYA) Is Worth After These Results

It's been a good week for Ryanair Holdings plc (ISE:RYA) shareholders, because the company has just released its latest full-year results, and the shares gained 6.0% to €23.85. Ryanair Holdings reported in line with analyst predictions, delivering revenues of €14b and statutory earnings per share of €1.45, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Ryanair Holdings' 22 analysts are now forecasting revenues of €15.0b in 2026. This would be a reasonable 7.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 26% to €1.92. Yet prior to the latest earnings, the analysts had been anticipated revenues of €14.8b and earnings per share (EPS) of €1.80 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Ryanair Holdings

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.4% to €24.78. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Ryanair Holdings, with the most bullish analyst valuing it at €30.00 and the most bearish at €19.10 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Ryanair Holdings shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Ryanair Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.8% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.8% annually. Even after the forecast slowdown in growth, it seems obvious that Ryanair Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ryanair Holdings' earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Ryanair Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Ryanair Holdings going out to 2028, and you can see them free on our platform here.

We also provide an overview of the Ryanair Holdings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.