Ryanair Holdings: Hold Rating Amid Rising Costs and Valuation Concerns

Morgan Stanley analyst Conor Dwyer has maintained their neutral stance on RYA stock, giving a Hold rating today.

Conor Dwyer has given his Hold rating due to a combination of factors impacting Ryanair Holdings. The company’s net income is expected to rise by 10% for FY26, driven by an increase in fares, which is anticipated to offset the pressures from rising costs. However, while the revenue per seat is projected to grow, the costs per seat are also expected to increase, which tempers the overall financial outlook.
Moreover, Ryanair’s valuation appears to be in line with historical trends, with its EV/EBIT for FY26 slightly below the five-year trailing median. Although there is potential for earnings upgrades, the company’s average free cash flow yield is less attractive compared to other high-margin carriers. Additionally, the decision to cancel the assumed buyback for FY27 due to recent financial commitments further supports a cautious approach, leading to the Hold recommendation.

In another report released today, Jefferies also maintained a Hold rating on the stock with a €21.00 price target.