Jaina Mistry, an analyst from Jefferies, maintained the Hold rating on Ryanair Holdings. The associated price target remains the same with €23.40.
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Jaina Mistry’s rating is based on several key considerations. Ryanair Holdings demonstrated a strong performance in the first quarter, surpassing expectations in sales, EBIT, and net profit. This positive outcome was largely driven by effective cost management and robust pricing strategies. However, despite these impressive results, Mistry remains cautious about the company’s future prospects.
While Ryanair’s long-term investment potential is appealing due to its cash-generative business model, there are several challenges that temper enthusiasm. The company faces significant cost pressures from carbon expenses and has limited benefits from its new fleet in the near term. Additionally, there is no clear cost reduction program in place, and the company has substantial exposure to Boeing. These factors, combined with uncertainties in yield management, contribute to the Hold rating, as the stock trades at moderate valuation multiples.