easyJet: Oddo adjusts target price

(CercleFinance.com) - Oddo has confirmed its buy rating on the easyJet stock, although has cut its target price from 2,050p to 1,730p (with a 75-bp cut in its medium-term estimate for the group's EBITDAR margin and a 60-bp increase in its credit spread).


On Friday easyJet reported full-year (to end-September) earnings growth that was in line with expectations, with a pre-tax profit expected between 570 million and 580 million pounds (vs. the consensus of 580 million pounds), against a previous estimate rate of between 550 million and 590 million pounds.

We were particularly disappointed by the guidance on unit costs excluding fuel and at constant exchange rates, which is expected stable over the year. The company explains this lower performance by: i/ the postponement of a number of A321neo deliveries until FY2020 (related to execution problems at Airbus), and ii/ the high level of disruptions (in particular related to air traffic control issues), which becomes normative, Oddo explained in its daily research report.



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