(CercleFinance.com) – Liberum downgrades its recommendation on Ryanair from ‘buy’ to ‘hold’ and reduces its target price from 16.5 to 11 euros, amid concerns that the current consensus for next year requires too many factors in order to move in Ryanair’s direction.
“A double-digit increase in average fares, in the face of a potential recession, would require significant industry capacity moderation” explains the broker in the summary of its note on the Irish company.
Liberum does, however, continue to consider Ryanair a long-term winner in the European air travel sector, although it adds that “non-fuel unit costs would need to continue to fall, despite widespread inflationary pressures”.
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