Shares in easyJet (LON:EZJ) have fallen deep into the red in today’s session even as Liberum lifted its price target on the low-cost carrier. Proactive Investors quoted the broker as cautioning on short-term uncertainty for the budget airline.
As of 13:12 GMT, easyJet’s share price had given up 2.10 percent to 1,212.00p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.60 percent lower at 6,993.85 points. The group’s shares have lost more than 12 percent of their value over the past year, as compared with about a 4.7-percent dip in the Footsie.
Liberum flags short-term uncertainty
Liberum, which rates easyJet as a ‘hold,’ lifted its price target on the stock from 1,250p to 1,350p today, following recent weakness in the group’s share price. Proactive Investors quoted the analysts as cautioning, however, that unit revenues for the low-cost airline were under pressure in the winter against “tough comparatives flattered by Easter timing and the demise of Air Berlin and Monarch”.
“Summer remains the key to profitability, but while forward bookings are stronger, revenue visibility remains limited”, the analysts elaborated, adding, however, that they still considered easyJet “amongst the long-term winners in the European airline industry”.
The comments came after the budget carrier posted a rise in full-year profits last week, adding that it had seen ‘solid demand’ in forward bookings, despite Brexit uncertainty.
Other analysts on low-cost airline
Berenberg Bank, which sees easyJet as a ‘sell,’ lowered its valuation on the shares from 1,215p to 1,160p today, while Macquarie, which is bullish on easyJet with a ‘buy’ rating, set a valuation on the stock of 1,475p yesterday. According to MarketBeat, the blue-chip carrier currently has a consensus ‘hold’ rating and an average price target of 1,570.31p.