easyJet share price: HSBC remains bullish on low-cost carrier
Analysts at HSBC remain bullish on easyJet (LON:EZJ), despite headwinds from the weaker pound and security concerns. The bank has reiterated its ‘buy’ rating on the low-cost carrier in the wake of the group’s results earlier this month when easyJet posted a drop in full-year profits.
easyJet’s share price has been little changed in today’s session, and was flat at 1,065.00p as of 12:35 GMT. The stock is slightly underperforming the broader London market with the benchmark FTSE 100 index currently standing 0.19 percent higher at 6,832.95 points. The group’s shares have lost more than 35 percent of their value over the past year, and are down by nearly 40 percent in the year-to-date.
HSBC reiterated its ‘buy’ rating on easyJet today, with a price target of 1,300p on the shares, while reaffirming low-cost rival Ryanair as a ‘hold’. Proactive Investors quoted the bank’s analyst Andrew Lobbenberg as saying that while both companies were facing headwinds from the weaker pound and terror threats which have hit bookings to North Africa, an early snowfall at certain ski destinations may have encouraged holidaymakers to start booking up flights for winter breaks. He further noted that the weakness in sterling should encourage tourists into the UK.
The comments follow easyJet’s full-year results earlier this month when the budget airline posted a drop in full-year profits, with pound weakness, security concerns and increased competition weighing on the airline’s performance.
The 23 analysts offering 12-month price targets for easyJet for the Financial Times have a median target of 1,015.00p, with a high estimate of 1,350.00p and a low estimate of 800.00p. As of November 21, the consensus forecast amongst 27 polled investment analysts covering the budget carrier advises investors to hold their position in the company.
As of 12:57 GMT, Wednesday, 23 November, easyJet plc share price is 6,835.57p.
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