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On Wednesday, Bernstein SocGen Group has increased the price target for Ryanair (RYA:ID) (NASDAQ:RYAAY) shares, lifting it from EUR23.00 to EUR27.00. The firm continues to recommend an Outperform rating on the airline’s stock.
The revision follows Ryanair’s announcement that it will continue to return cash to shareholders, building on last year’s €1.5 billion buyback with an additional €750 million planned for the next 12 months. This shareholder-friendly move comes even as the company is working to term out €2 billion of debt.
Ryanair has also successfully navigated past disruptions caused by Online Travel Agencies (OTAs), now forecasting an increase in fares. The airline anticipates mid-teens fare growth in the first quarter and mid-single digit growth in the second quarter.
Despite facing rising non-fuel unit costs, which are expected to go up by 3% this year after a 5% rise in FY2025, Ryanair’s high fares and supply constraints are generating sufficient cash flow to support its shareholder return strategy.
The airline’s financial resilience and strategic initiatives to manage costs and enhance revenue have contributed to the positive outlook from Bernstein SocGen Group, signaling confidence in Ryanair’s ongoing performance and cash return capabilities.
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