easyJet share price flies higher as Canaccord Genuity drops bearish stance

Talks with Air Berlin continue

easyJet share price flies higher as Canaccord Genuity drops bearish stance

Shares in easyJet (LON:EZJ) closed higher in the previous session, as analysts at Canaccord Genuity lifted their rating on the shares. The move follows the lowcost airline’s recent trading update.

easyJet’s share price added 2.48 percent to close at 1,321.00p, outperforming the broader UK market, with the benchmark FTSE 100 index ending the session 0.30 percent higher at 7,556.24 points. The group’s shares have added more than 47 percent to their value over the past year, and are up by some 31 percent in the year-to-date.

Analysts lift rating on easyJet

Canaccord Genuity lifted its rating on easyJet’ from ‘sell’ to ‘hold’ yesterday, and hiked its price target on the shares from 1,150p to 1,200p, arguing that better-than-expected Summer 2017 trading would provide greater-than-expected lift for the shares. Sharecast reported that the Canadian broker also hiked its forecasts for earnings per share for 2016/17 by 6.2 percent to 84.0p, on the back of which it also nudged up its estimate for the company’s dividend per share from 36.7p to 38.9p.

The analysts argue that while greater competition is still expected to prove a headwind for easyJet’s profit recovery, the group’s own capacity growth deceleration in 2017/18 would act as a partial offset.

The move came after easyJet recently posted an upbeat trading update, forecasting that its full-year profits will come in at the upper end of its guidance. 

Talks with Air Berlin continue

In a separate development, Reuters quoted a spokesman for insolvent German carrier Air Berlin as saying that the airline was continuing talks with the FTSE 100 group, without, however, specifying whether a contract was expected to be signed with the British airline. The news comes after reports suggested earlier this week that the talks were at risk of falling apart

As of 08:11 BST, Friday, 13 October, easyJet plc share price is 1,307.00p.

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