Proactive Investors - Ryanair (LON:0RYA) and easyJet (LON:EZJ) have both been graced with share price target upgrades from Deutsche Bank (ETR:DBKGn) analysts, predicting the low-cost duo will remain key players in the sector's recovery.
Deutsche raised Ryanair’s share price target from €20 to €22.50, up 12.5% on Wednesday’s close, alongside anticipating a 4% 25p jump to 635p for easyJet stock.
easyJet’s interim results of an 80% jump in revenue and falling headline losses were met with optimism by Deutsche, which commented: “We stay ahead of consensus, with ample room to go higher.”
Analysts also raised full-year pre-tax profit forecasts for easyJet by 17%, now predicting the figure to come in around £436mln, thanks to lower fuel costs and higher earnings from holiday packages.
On Ryanair, Deutsche judged: “The 2023 results didn’t disappoint, with fourth quarter fares revenues, in particular, coming in ahead of our expectations.”
Full-year revenues jumped 124% to €10.8bn at the Irish airline, while post-tax profit recovered to €1.43bn after a loss last year.
Deutsche also echoed previous remarks that Ryanair would “remain a structural winner in European aviation”.
Both airlines saw ‘buy’ ratings reiterated by the bank.