RBC Capital Markets lifts easyJet to 'outperform'
RBC Capital Markets upgraded on Tuesday to 'outperform' from 'sector perform' and lifted the price target to 650p from 570p saying it's expecting FY26 profit progress to surprise to the upside.
"We see easyJet as well positioned in an environment of strong UK travel demand, amplified fuel and FX tailwinds, and firm forecasts from FY26E," the bank said.
RBC said it also expects a stronger contribution from easyJet's own medium-term profit measures in FY26E (reducing winter losses, upgauging to lower unit-cost A320/1neos aircraft, Holidays growth).
It said that both RBC Elements website activity and Barclaycard spend trends data indicate strong UK travel demand.
RBC said that neither it nor consensus credit easyJet for delivery of its medium term £1bn headline pre-tax profit target, so only above-expected progress is required to prompt upgrades.
The bank said it now forecasts headline pre-tax profit of £791m, around 3% ahead of consensus of £762m in FY26E.
At 1010 BST, the shares were up 0.5% at 582p.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.