Ryanair’s bullish update had very little to find fault with, according to analysts at Deutsche Bank.
Second quarter net profit was 2% above consensus and 7% higher than the broker expected due to strong revenues.
Net cash was lower than expected at €844 million due to a material working capital outflow, but other than that there was much to like, suggests the bank.
Third-quarter average fares are expected to again be up by a 'mid-teens percentage' year-on-year, while the guide is for a full-year net profit of €1.85bn to €2.05bn.
The mid-point of €1.95bn is 7% above Bloomberg’s consensus and 20% higher than Deutsche Bank’s.
A maiden €400m dividend plus the promise of future returns equal to 25% of after-tax profit as a dividend plus specials and buybacks if appropriate.
Buy is the rating with a €21 share price target against €16.24, up 7% today.