(CercleFinance.com) – Stifel raises its recommendation on easyJet to ‘hold’ to ‘buy’, with a price target of 650 pence, in a note devoted to the European airline sector, for which it expects mergers and acquisitions ‘bring more rationality’.
“Rational capacity, not the strength of demand, is the most important driver for strong returns and post-pandemic profitability,” said the broker, who nevertheless recognizes that demand remains strong.
In this context, Stifel puts forward easyJet and Air France-KLM as dynamic ideas, while Lufthansa and Ryanair, also recommended to ‘buy’, have in his view long-term fundamentals that are undervalued, and which remain to be ‘held’ on IAG.
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