Analyst Jaina Mistry from Jefferies maintained a Hold rating on Ryanair Holdings (RYA – Research Report) and increased the price target to €21.00 from €18.20.
Jaina Mistry has given her Hold rating due to a combination of factors impacting Ryanair Holdings. The company is expected to see a healthy sales growth in the upcoming quarter, despite a decrease in average fares. This indicates a strong performance in terms of revenue generation, which aligns with Ryanair’s long-term investment appeal due to its volume-driven and cash-generative business model.
However, Jaina Mistry remains cautious due to several challenges Ryanair faces. These include significant carbon-related costs, which pose a substantial headwind, and the company’s considerable reliance on Boeing, which introduces a level of uncertainty. Additionally, while there is a minor benefit anticipated from the introduction of a new fleet, these positive aspects are not sufficient to warrant a more optimistic rating at this time.
According to TipRanks, Mistry is a 3-star analyst with an average return of 2.6% and a 46.88% success rate.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a €21.70 price target.