Ryanair stock holds as Evercore ISI affirms $50 target

Published 27/01/2025, 20:20
© Reuters.

Looking forward, Ryanair updated its passenger outlook for fiscal year 2025 to just under 200 million, a slight revision from the previously forecasted range of 198-199 million. The forecast for fiscal year 2026 was set at 206 million passengers, marking a 3% year-over-year increase, which is a more conservative estimate compared to the earlier expectation of 210 million passengers, indicating a 5% growth. InvestingPro subscribers can access additional insights, including 8 key ProTips and comprehensive financial health metrics that show Ryanair's strong cash flow position and stable market performance. InvestingPro subscribers can access additional insights, including 8 key ProTips and comprehensive financial health metrics that show Ryanair's strong cash flow position and stable market performance.

Looking forward, Ryanair updated its passenger outlook for fiscal year 2025 to just under 200 million, a slight revision from the previously forecasted range of 198-199 million. The forecast for fiscal year 2026 was set at 206 million passengers, marking a 3% year-over-year increase, which is a more conservative estimate compared to the earlier expectation of 210 million passengers, indicating a 5% growth. InvestingPro subscribers can access additional insights, including 8 key ProTips and comprehensive financial health metrics that show Ryanair's strong cash flow position and stable market performance.

The airline's operating margin for the fiscal third quarter of 2025 improved to +1%, up from -1% in the comparable period of the prior year, slightly ahead of Evercore ISI's estimate by about 50 basis points. Ticket prices during the quarter rose by 1% year-over-year, which was more favorable than the company's initial guidance suggesting fares would be flat to down by as much as 5%.

Looking forward, Ryanair updated its passenger outlook for fiscal year 2025 to just under 200 million, a slight revision from the previously forecasted range of 198-199 million. The forecast for fiscal year 2026 was set at 206 million passengers, marking a 3% year-over-year increase, which is a more conservative estimate compared to the earlier expectation of 210 million passengers, indicating a 5% growth.

The company's commentary on the potential for further pricing improvements was described as cautiously optimistic. This sentiment is partly driven by the settlement of numerous content agreements with online travel agencies across Europe.

In other recent news, Ryanair, the Ireland-based airline, has been experiencing significant developments. The company's full-year net income guidance for FY25 is now projected to be between €1.55 billion and €1.61 billion, an increase above the consensus by 2-6%. In response, BofA Securities adjusted their FY25 net income estimate for Ryanair to the upper end of the guidance at €1.61 billion. Despite an 18% decline in after-tax profits to EUR 1.8 billion, Ryanair reported a 9% increase in passenger traffic, reaching a record 115 million.

The airline's shares were upgraded from Neutral to Buy by UBS, citing an improved outlook for 2026. Morgan Stanley (NYSE:MS) also raised its price target on Ryanair shares to €22.20 from €21.40, maintaining an Overweight rating on the stock. This was despite a forecasted reduction in passenger numbers due to slower aircraft deliveries from Boeing (NYSE:BA). The firm revised their FY26 earnings per share (EPS) estimate upwards by 6%.

Ryanair also expanded its fleet with the addition of Boeing 737 Gamechanger aircraft, which numbered 172 operational by the end of October. The company opened five new bases and introduced 200 new routes, indicating a proactive approach to growing its operations. These are the recent developments that investors should consider when looking at Ryanair's future prospects.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.