Jet2 PLC (DRTGF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Jaina Mistry from Jefferies maintained a Buy rating on the stock and has a p2,200.00 price target.
Jaina Mistry’s rating is based on several strategic moves and financial indicators that highlight Jet2 PLC’s strong position. The company has taken significant steps to streamline its balance sheet by repurchasing its remaining convertible bond, which simplifies its financial structure and demonstrates robust cash management. This financial maneuver not only strengthens Jet2’s balance sheet but also positions the company for potential share buybacks, contingent on stable macroeconomic conditions and controlled costs.
Moreover, Jet2’s shares are currently trading at a substantial discount of 43% compared to historical levels, suggesting an undervaluation that presents a buying opportunity. Additionally, the company is expected to achieve an 8% compound annual growth rate in earnings before interest and taxes over the next two years, indicating strong future performance. These factors collectively underpin Jaina Mistry’s Buy rating for Jet2 PLC.
In another report released yesterday, Canaccord Genuity also reiterated a Buy rating on the stock with a p2,050.00 price target.