Navitas stock soars as company advances 800V tech for NVIDIA AI platforms
Investing.com - JPMorgan downgraded EasyJet Plc. (LSE:EZJ) (OTC:ESYJY) from Overweight to Neutral and reduced its price target to GBP5.00 from GBP6.70 ahead of the airline’s fiscal year results due November 25.
The downgrade comes as JPMorgan placed the airline on Negative Catalyst Watch, citing concerns about weaker pricing continuing into winter as increasing capacity growth from EasyJet and competitors meets a saturated UK leisure market, potentially compounded by consumer uncertainty surrounding the UK budget.
JPMorgan expressed concern that progress on reducing winter losses could disappoint the market, forecasting a worse winter profit-before-tax loss for the first half of fiscal 2026.
The investment bank also noted that September 2026 may present a more challenging year compared to September 2025 for ex-fuel costs, with lower available seat kilometer growth, persistent inflationary pressures, and no major upgauging benefits.
Despite these concerns, JPMorgan acknowledged that EasyJet has recently underperformed with shares down 15% year-to-date and does not appear expensive at approximately 7 times calendar year 2026 estimated price-to-earnings, while still maintaining strategic growth pillars including its Holidays business and upgauging benefits that could boost medium-term earnings growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.