Ryanair shares are trading lower Thursday as Deutsche Bank announced it has cuts its outlook for the budget Irish airline. Deutsche Bank analysts said they now consider the company’s earnings growth will be less buoyant over the next two years.
By 1350 BST, Ryanair shares were 2.54% lower at €16.14. The stock made some solid gains during May.
Ryanair ratings downgrade
Earlier Thursday, Deutsche Bank analysts sent out a research note to clients outlining its view of the Ryanair stock. The German bank said it reduced its rating to ‘Hold’ from ‘Buy’. It also reduced its 12-month price target for the airline to €17.20 from €17.40.
“Our new Ryanair forecasts suggest earnings growth and free cash flow will be muted for the next two years. It’s clear to us that neither issue is structural, yet recommending airline stocks with such forecasts is difficult,” Deutsche Bank’s Ryanair analysts wrote.
Ryanair recognizes Italian cabin crew unions
Separately, Ryanair has now formerly recognized two Italian cabin crew unions, ANPAC and ANPAV. Ryanair said the agreement follows “extensive” negotiations, since the airline’s December announcement it would recognise employee unions for the first time in its history.
“We are pleased to announce this recognition agreement with ANPAC and ANPAV on behalf of our directly employed cabin crew in Italy,” said Eddie Wilson, Ryanair’s Chief People Officer, in a press release.
“This is our first cabin crew union recognition agreement (which follows recognition agreements with pilot unions in the UK and Italy earlier this year) and further demonstrates Ryanair’s progress on recognising and negotiating with unions across Europe for our people,” Wilson said.
He added: “We are making good progress with other cabin crew unions across Europe and we hope to sign more recognition agreements with both pilot and cabin crew unions in the coming weeks.”