Ryanair Holdings (RYA – Research Report), the Industrial Goods sector company, was revisited by a Wall Street analyst today. Analyst Jaina Mistry from Jefferies maintained a Hold rating on the stock and has a €23.40 price target.
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Jaina Mistry’s rating is based on a combination of factors that reflect both the positive and challenging aspects of Ryanair Holdings’ current financial outlook. While the company is expected to recover some pricing losses from the previous year, the overall price growth compared to the first quarter of 2024 remains flat, indicating limited immediate catalysts for significant stock appreciation.
Despite Ryanair’s strong long-term investment potential, driven by its volume-focused and cash-generative business model, Mistry remains cautious due to uncertainties in pricing, potential challenges from carbon and sustainable aviation fuel (SAF) headwinds, and the company’s substantial reliance on Boeing for aircraft deliveries. Additionally, the stock is trading below its historical average EV/EBITDA, suggesting that while there is room for growth, current market conditions warrant a Hold rating.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RYA in relation to earlier this year.