Bernstein raises EasyJet stock target to GBP5.75, keeps rating

Published 24/05/2025, 12:20
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On Friday, Bernstein SocGen Group updated its outlook on EasyJet Plc. (EZJ:LN) (OTC:ESYJY), raising the price target from GBP4.80 to GBP5.75, while maintaining a Market Perform rating on the airline’s shares. Analyst Alex Irving provided insights into the company’s financial performance, noting that EasyJet’s first-half losses before tax were in line with consensus expectations and that the outlook remained broadly aligned.

Irving acknowledged EasyJet’s positive performance, particularly with its holiday segment, which continues to meet expectations without fail. The analyst pointed out that while EasyJet is benefiting from lower fuel costs and supply constraints, these advantages are not unique to the airline. Competitors like Ryanair and Wizz Air are also enjoying similar benefits, with the former preferred for its higher cash returns and the latter for its cheaper valuation.

The firm’s projections for EasyJet’s financials are largely consistent with market consensus for the fiscal year 2025 but are slightly more conservative for fiscal year 2026, with estimates approximately 3% lower. The decision to raise the price target reflects an adjustment for higher market multiples and anticipated reductions in non-fuel costs over the medium term.

Bernstein’s updated estimates for EasyJet include expectations of improved demand and lower non-fuel costs, notably in depreciation charges. Despite these positive adjustments, the firm continues to see greater potential in other airlines such as Ryanair and Wizz Air, which are positioned to benefit from supply constraints and offer attractive investment characteristics such as strong comparative metrics and high cash returns.

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