easyJet initiated with a Sector Perform at RBC Capital

RBC Capital analyst Ruairi Cullinane initiated coverage of easyJet (EJTTF) with a Sector Perform rating and 540 GBp price target. While the firm views the “Holidays” strategy as “a sensible way of monetizing” easyJet’s leisure-focused network and brand, it sees lower margins and free cash flow generation net of lease payments than at Ryanair (RYAAY) and Wizz Air (WZZZY) and also notes that both Ryanair and Wizz Air screen better on website visitor growth.