Bloomberg15 Nov 2021 07:35
(Bloomberg) -- (Adds details from research note)
EasyJet cut to reduce from hold at Kepler Cheuvreux due to
deteriorating traffic trends and a risk that it has to
incentivize demand with fare discounts.
* EasyJet is the “the most vulnerable company” to ongoing
weakness in traffic and sees slot requirements at European
capacity-constrained airports hurting the low-cost airline,
Kepler analyst Ruxandra Haradau-Doser says
** PT set at 460p, implies a 23% decrease from last price
* “EasyJet had a poor track record in terms of cost control pre-
crisis and the airline has already indicated increasing costs in
the future,” the analyst adds
* Kepler’s downgrade comes after Citi said last month EasyJet is
likely to face near-term pricing pressures, cutting to sell
* NOTE: 17 analysts have buy, 6 have hold, 2 have sell ratings
on stock, according to Bloomberg data
Upcoming Catalysts
* Next earnings announcement: Nov. 30