easyJet: Credit Suisse cuts target price
(CercleFinance.com) - easyJet has announced that it wants to fly slightly less than 40% of the planned capacity for the fourth quarter 2020, as announced when the group presented its Q3 results.
Following this announcement, Credit Suisse reduced its target price for the share by 12% to 752p (versus 855p), although retained its outperform rating.
"We increase our underlying 2020E PBT loss from £687m to £806m (BBG consensus £693m), reflecting softer demand than previously expected as travel restrictions and quarantines affect late booking demand," Crédit Suisse said.
"We now forecast a negative FCF of £1.4bn in 2020E before a modest positive FCF of £71m in 2021E (-£1.2bn, +£02.bn before)," the broker adds.
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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.
Following this announcement, Credit Suisse reduced its target price for the share by 12% to 752p (versus 855p), although retained its outperform rating.
"We increase our underlying 2020E PBT loss from £687m to £806m (BBG consensus £693m), reflecting softer demand than previously expected as travel restrictions and quarantines affect late booking demand," Crédit Suisse said.
"We now forecast a negative FCF of £1.4bn in 2020E before a modest positive FCF of £71m in 2021E (-£1.2bn, +£02.bn before)," the broker adds.
Copyright (c) 2020 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.