EasyJet: Jefferies sees attractive valuation

(CercleFinance.com) - Jefferies maintains its 'buy' rating on easyJet shares, along with its £7.
10 target price, in an update to its model ahead of the airline's publication of its H1 results on 22 May.

Q2 2024-25 is unlikely to be a significant fundamental catalyst, given the revenue headwinds, the broker warns, which leaves its estimates largely unchanged.

Jefferies believes, however, that H2 should see an inflection point if yield and RASK (revenue per available seat per kilometer) return to growth as capacity growth slows.

Valuation is attractive; our reverse SOTP shows that the market values Holidays at zero, Jefferies adds, which sees opportunities for value crystallization, as the company may raise its medium-term targets for Holidays later this year.


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