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On Tuesday, JPMorgan increased its price target for Ryanair (RYA:ID) (NASDAQ: RYAAY) shares to €28.00, up from the previous €27.00, while reiterating an Overweight rating. The airline, currently trading at $53.97 with a market capitalization of $28.07 billion, has seen its stock trading near its 52-week high following robust fourth-quarter results. The positive market reaction was driven by an optimistic summer fares forecast and the announcement of a new share buyback program. According to InvestingPro data, the stock has shown strong momentum with a 24% return over the past six months.
Analysts from JPMorgan highlighted the strong near-term outlook for fares, suggesting that there could be room for earnings upgrades. They noted that the second quarter and beyond may have some conservative estimates built-in, and that Ryanair could benefit from multiple pricing tailwinds throughout the year. The company’s financial health appears robust, with a P/E ratio of 15.4 and annual revenue of $15.09 billion. Despite a slight disappointment in the unit cost outlook, JPMorgan believes that Ryanair has the potential to continue delivering value to its shareholders, even though the company downplayed the likelihood of future share buyback announcements.
The firm has increased its net income estimates for Ryanair for the fiscal years ending in March 2026, 2027, and 2028 by 2%, 2%, and 4%, respectively. These revisions are based on the expectation that higher revenues will more than compensate for increased costs. InvestingPro analysis reveals that management has been aggressively buying back shares, and the company maintains strong profitability with $1.74 billion in net income over the last twelve months. JPMorgan forecasts that Ryanair will nearly recover its entire pricing decline by March 2025 and has adjusted its earnings per share (EPS) estimates upward due to the impact of the new share buyback. For more detailed insights and 8 additional ProTips about Ryanair, consider checking out the comprehensive Pro Research Report available on InvestingPro.
JPMorgan’s updated forecast for Ryanair’s net income in March 2026 is approximately €2.1 billion, which is around 6% higher than the Bloomberg consensus. The revised price target of €28 represents a roughly 20% upside from the previous target and reflects the increased earnings estimates. Based on InvestingPro’s Fair Value analysis, Ryanair currently appears to be trading below its intrinsic value, suggesting potential upside for investors.
In other recent news, Ryanair reported a fiscal fourth-quarter 2025 net loss of €328 million, which was better than the expected €340 million loss. The airline also announced a €750 million buyback program to be executed over the next 6 to 12 months, demonstrating confidence in its operational performance. Ryanair’s passenger numbers grew by 5.8% in April, reaching 18.3 million, with a load factor of 93%. Analysts at Bernstein maintained an Outperform rating on Ryanair, with a price target of $55, citing the airline’s robust financial health and strategic positioning in the market. The company’s guidance for fiscal year 2026 aligns with consensus predictions of 206 million passengers, with first-quarter estimates at 55.5 million passengers. Additionally, Ryanair’s CEO, Michael O’Leary, confirmed that Boeing (NYSE:BA) is committed to providing alternative aircraft if the 737 MAX 10 fails to receive certification, ensuring fleet expansion plans proceed as scheduled. Data from Cirium shows a consistent demand for Ryanair’s services, with seat capacity growth projected in the coming months. Ryanair’s management remains optimistic about fare increases and passenger growth, indicating a strong outlook for the upcoming quarters.
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