Citi maintains Buy on Ryanair shares, EUR26.00 target

Published 05/03/2025, 08:46
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Wednesday, Citi analysts reaffirmed their Buy rating on Ryanair stock with a consistent price target of EUR26.00. The endorsement follows the airline’s recent traffic statistics release for February, which showed a roughly 14% year-over-year increase in passenger volume, reaching 12.6 million. The load factor remained steady at approximately 92%, mirroring the same month in the previous year. The airline, with a market capitalization of $23 billion and a P/E ratio of 13.85, has maintained strong financial performance with revenue growth of 5.34% over the last twelve months.

Ryanair has reported transporting close to 185 million passengers from April to February, marking an approximate 9% growth compared to the same period last year. These figures suggest that the airline is on course to achieve its full-year traffic forecast of 200 million passengers, provided that March sees a traffic increase of around 9%. According to InvestingPro analysis, the company has been profitable over the last twelve months, with management actively buying back shares.

Citi’s analysis indicates that the uptick in traffic growth and a robust load factor are signs of sustained strong demand and the absence of new supply chain disruptions in February. The firm’s analysts have reiterated their Buy recommendation, signaling confidence in Ryanair’s performance and trajectory. With an overall financial health score of "GREAT" and current trading below InvestingPro’s Fair Value estimate, the stock appears positioned for potential upside.

In other recent news, Ryanair’s fiscal third-quarter net income reached €149 million, significantly exceeding the consensus estimate of €60 million. Analysts from Bernstein, BofA Securities, and Morgan Stanley (NYSE:MS) have all adjusted their price targets for Ryanair, reflecting the airline’s strong financial performance and optimistic earnings outlook. Bernstein increased its target to €23.50, maintaining an Outperform rating, while BofA Securities also raised its target to €23.50, reaffirming a Buy rating. Morgan Stanley adjusted its target to €22.20, citing optimism in future earnings despite slower aircraft deliveries.

Evercore ISI kept its price target steady at $50, maintaining an In Line rating, following Ryanair’s reported 1% year-over-year increase in total revenue per passenger for the December quarter. The company’s operating margin improved to +1%, compared to -1% in the previous year. Ryanair’s updated passenger outlook for fiscal year 2025 is now just under 200 million, with a forecast of 206 million passengers for fiscal year 2026.

Analysts have noted Ryanair’s robust fare trends, with Bernstein projecting annual cash returns of €2 billion and BofA Securities highlighting a projected 13% compound annual growth rate in earnings per share from FY25 to FY28. Morgan Stanley’s revised estimates reflect stronger unit revenue, with an anticipated increase in revenue per seat by 2.4% year-over-year. Ryanair’s strategic financial management and market share gains have drawn investor attention as the airline navigates the post-pandemic travel landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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