Ryanair’s share price can rise by more than 50% , according to JP Morgan, which rates the airline as "extremely attractive".
On a short-term view, there is potential for earnings momentum to keep rising while longer-term Ryanair's cost advantage over peers will show through, says the bank.
In the second quarter results, out yesterday, yield strength far exceeded JP Morgan's expectations, which bodes well for the sector amid concerns that air travel spend could come under pressure.
Winter guidance looked relatively conservative given that implied fourth-quarter losses of around the level seen during COVID-19.
Finally, the year to March 2025 could see a big step-up in net income on alleviated fuel and ex-fuel cost pressure alone, even if fares finally begin to step down, JP Morgan believes.
The bank's share price target rises to €25 or 56% above the market level.