EasyJet (EJTTF – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Jaina Mistry from Jefferies maintained a Buy rating on the stock and has a £7.10 price target.
Jaina Mistry’s rating is based on the anticipation of a positive shift in EasyJet’s performance in the second half of the fiscal year. Although the first half may not significantly impact the fundamentals due to some revenue challenges, the second half is expected to improve if there is a return to growth in yield and revenue per available seat kilometer (RASK) as capacity growth slows.
Moreover, the valuation of EasyJet is considered attractive, with potential opportunities for value realization. The market currently undervalues the ‘Holidays’ segment, and there is potential for the company to enhance its medium-term Holidays targets later in the year, which could unlock additional value.
According to TipRanks, Mistry is a 3-star analyst with an average return of 2.3% and a 46.81% success rate.