Ryanair: Oddo BHF still a buyer
(CercleFinance.com) - Oddo BHF confirms its Outperform rating on Ryanair shares, along with its target price of E20 (cp: E16, +2%).
The analyst believes that the increase in market share gains and the resilience of capacity argue for price increases that should offset inflation in unit costs excluding fuel.
Given the FCF generation profile, Oddo BHF believes that the airline's aim of returning to zero net debt by April 2024 is more than credible, with it modeling a regular dividend from FY 2024, with a payout ratio equivalent to 30%.
The analyst adds that the share's valuation is attractive given the company's fundamentals, with an EV/EBITDA multiple of 6.3x in 2023-24, falling to 4.8x in 2024-25.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The analyst believes that the increase in market share gains and the resilience of capacity argue for price increases that should offset inflation in unit costs excluding fuel.
Given the FCF generation profile, Oddo BHF believes that the airline's aim of returning to zero net debt by April 2024 is more than credible, with it modeling a regular dividend from FY 2024, with a payout ratio equivalent to 30%.
The analyst adds that the share's valuation is attractive given the company's fundamentals, with an EV/EBITDA multiple of 6.3x in 2023-24, falling to 4.8x in 2024-25.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.