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Investing.com - Goldman Sachs downgraded Ryanair (NASDAQ:RYAAY) from Buy to Neutral on Monday, while also lowering its price target to EUR27.50 from EUR29.50.
The investment bank cited that its key investment catalysts for the Irish airline have largely played out, leaving it with a "less differentiated" earnings outlook compared to consensus estimates.
Goldman Sachs had previously maintained a bullish stance on Ryanair based on expectations of earnings upgrades for fiscal year 2026, driven by what it believed would be a larger negative impact from online travel agencies in fiscal 2025 than what consensus had factored in.
The bank had also anticipated a price-to-earnings ratio re-rating from low levels following the removal of ownership restrictions, another catalyst that has now materialized.
With these catalysts now realized and Ryanair’s valuation having "normalized from low levels," Goldman Sachs has adopted a more cautious position on the airline’s shares.
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