easyJet: Stifel upgrades stock

(CercleFinance.com) - Stifel has upgraded its rating on easyJet shares from "sell" to "hold", despite reducing its target price for them from 650p to 600p, following the low-cost airline's 1.
2 billion pound capital increase and its recent trading update.

"Our more constructive view is based on the share price now capturing the anticipated dilution and trading remaining benign for short-leisure (despite higher fuel prices and new COVID-19 variants)," the broker says.

However, longer-term structural and strategic concerns remain: the broker still expects structural margin pressures and negative FCF in the coming years, due to both upward pressure on costs and downward pressure on yields.


Copyright (c) 2021 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.