In a report released today, Jaina Mistry from Jefferies maintained a Hold rating on Ryanair Holdings (RYA – Research Report), with a price target of €21.00.
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Jaina Mistry has given her Hold rating due to a combination of factors influencing Ryanair Holdings’ current and future performance. The company’s FY25 results were in line with expectations at the net profit level, despite a slight miss in EBIT. The outlook for summer pricing appears robust, with anticipated growth in fares during the first and second quarters, which could positively impact shares.
However, several challenges temper the long-term investment appeal. These include the significant cost pressures from carbon emissions, limited benefits from the new fleet over the next two years, and the absence of a defined cost reduction program. Additionally, Ryanair’s substantial reliance on Boeing and uncertainties surrounding yield management contribute to the cautious stance. The stock’s current trading multiples, such as EV/EBITDA and PE ratios, further support the Hold recommendation.