easyJet: 'pause for breath after a run,' UBS says
(CercleFinance.com) - After rising by over 25% over the past six months, today UBS analysts have downgraded their rating on the British low cost airline EasyJet.
Analysts have downgraded their previous “buy” rating to "neutral," although have upped their 12-month target price for the share from 1,800 pence to 1,900 pence.
UBS underlines the share price's recent performance, which has tightened its valuation. "While we consider easyJet one of the leading European short haul operators we are not confident enough (in the share) to flex our valuation multiple or 2018e earnings upwards," the broker's report says. This is particularly so, as UBS' forecasts are already higher than those of easyJet's management.
In short, analysts believe that “investors need to be disciplined at this point” and let the revaluation of earnings carry the share, rather than the expansion of multiples. EasyJet 2018 P/E works out at 17.4x, according to UBS. Finally, upside potential - of less than 10% - is considered insufficient.
Copyright (c) 2018 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.
Analysts have downgraded their previous “buy” rating to "neutral," although have upped their 12-month target price for the share from 1,800 pence to 1,900 pence.
UBS underlines the share price's recent performance, which has tightened its valuation. "While we consider easyJet one of the leading European short haul operators we are not confident enough (in the share) to flex our valuation multiple or 2018e earnings upwards," the broker's report says. This is particularly so, as UBS' forecasts are already higher than those of easyJet's management.
In short, analysts believe that “investors need to be disciplined at this point” and let the revaluation of earnings carry the share, rather than the expansion of multiples. EasyJet 2018 P/E works out at 17.4x, according to UBS. Finally, upside potential - of less than 10% - is considered insufficient.
Copyright (c) 2018 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.