Ryanair: a buy opportunity, according to SG.
(CercleFinance.com) - Société Générale (SG) has confirmed its buy rating on the Irish share Ryanair, believing that its recent correction in the market represents a good buy opportunity.
SG has a 12-month target price of 21.5 euros.
Two events have recently led to 1.5 billion euros of market cap being “wiped out” for the low-cost airline: first by the ruling of the European Court of Justice which ruled that employees were founded in their dispute over their affiliation to Irish labour law; SG believes that this ruling should only have a slight impact, in particular as personnel costs are not Ryanair's biggest expense: in a worst-case scenario, this would only impact the share price by one euro.
Another negative factor is the cancellation of almost 2% of the airline's flights by the end of October so as to "improve punctuality," the company says. This represents about 2,000 flights, affecting some 400,000 passengers. SG puts this into context: Ryanair operates 2,500 flights each day and carried 12.7 million passengers in August.
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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.
SG has a 12-month target price of 21.5 euros.
Two events have recently led to 1.5 billion euros of market cap being “wiped out” for the low-cost airline: first by the ruling of the European Court of Justice which ruled that employees were founded in their dispute over their affiliation to Irish labour law; SG believes that this ruling should only have a slight impact, in particular as personnel costs are not Ryanair's biggest expense: in a worst-case scenario, this would only impact the share price by one euro.
Another negative factor is the cancellation of almost 2% of the airline's flights by the end of October so as to "improve punctuality," the company says. This represents about 2,000 flights, affecting some 400,000 passengers. SG puts this into context: Ryanair operates 2,500 flights each day and carried 12.7 million passengers in August.
Copyright (c) 2017 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.