Analysts at Liberum Capital have upgraded their rating for Ryanair Holdings PLC (LSE:RYA) to 'buy' from 'hold' after "strong holiday season demand" for the budget airline led to a better-than-expected December 2022 quarter.
In a note to clients, the analysts said: "Management now expects March 2023E net profit to be between €1.325bn and €1.425bn, 25% better than the previous guidance range.
"We raise our forecasts accordingly. The higher base from 2023E and favourable fuel and FX movements see our 2024E estimates rise to a level that makes the valuation no longer appear stretched."
"Consequently," they added, "we increase our target price to €16 from €13 (CY2023E EV/IC/ROIC/WACC 1.0x) and upgrade our recommendation."
In early trade on Thursday, Ryanair shares were trading at €13.51 on Euronext Dublin, up 5.1%.