Ryanair stock holds as Bernstein backs $55 target

On Monday, Bernstein analysts maintained a positive stance on Ryanair shares, reiterating an Outperform rating with a steady $55.00 price target. The airline’s fiscal fourth-quarter 2025 results surpassed expectations, reporting a net loss of €328 million, which was better than the anticipated €340 million. Despite fares being lower due to the shift of Easter, ancillary revenue streams have returned to growth. According to InvestingPro data, Ryanair maintains a "GREAT" financial health score of 3.33, with revenue growth of 5.34% and a robust market capitalization of $26.63 billion.

The outlook for the first quarter is particularly robust, with fares expected to increase by mid to high teens percentage points. This fare hike could potentially bring the airline’s revenue on par with the profitable spring of 2023. Looking into the second quarter, fares are projected to see a modest rise. Ryanair’s management is optimistic, forecasting 206 million passengers by fiscal year 2026, along with only a slight increase in unit costs. InvestingPro analysis suggests the stock is currently undervalued, trading at a P/E ratio of 13.12. For deeper insights into Ryanair’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In a strategic move to enhance shareholder value, Ryanair has announced a €750 million buyback program to be executed over the upcoming 6 to 12 months. Concurrently, the company plans to extend the terms of its existing debt. This financial maneuvering follows the company’s recovery trajectory and reflects confidence in its operational performance going forward.

The airline’s resilience is evident in its ancillary revenue streams, which have bounced back, indicating a recovery path. This performance, paired with the aggressive fare outlook for the upcoming quarters, suggests that Ryanair is positioning itself for a strong fiscal year 2026.

Investors have taken note of Ryanair’s strategic initiatives and financial health, as reflected in the stock’s performance and analyst ratings. Bernstein’s reaffirmation of the $55.00 price target underscores the firm’s confidence in the airline’s ability to maintain its upward trajectory and deliver value to its shareholders.

In other recent news, Ryanair reported a solid increase in passenger numbers for April, achieving a growth rate of 5.8% to reach a total of 18.3 million passengers. The airline also maintained a strong load factor of 93%, indicating efficient capacity utilization. Ryanair’s guidance for fiscal year 2026 targets 206 million passengers, aligning with consensus estimates. For the first quarter, the airline aims for 55.5 million passengers, with a projected growth rate of 3.4% in May and June. Bernstein SocGen Group recently raised Ryanair’s stock target from $53.00 to $55.00, maintaining an Outperform rating. The analysts highlighted Ryanair’s robust financial health and its ability to attract customers seeking economical travel options during economic downturns. Additionally, Ryanair’s CEO announced that Boeing (NYSE:BA) has committed to providing alternative aircraft if the 737 MAX 10 certification faces delays, ensuring fleet expansion plans for 2027 remain on track. Bernstein analysts also reaffirmed their positive outlook on Ryanair, maintaining an Outperform rating with a target of €23.50, emphasizing the airline’s strong cash flow and strategic financial management.

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