EasyJet impressed analysts with its full-year results and the mood remained upbeat on reflection, though most concede the going gets harder from here on in.
Barclays said the numbers were at the top end of guidance with demand softness in the aftermath of the Israel-Hamas conflict now recovering.
“We share easyJet's optimism for its holidays business, but our estimates lag consensus and company goals,” hence an equal weight rating and price target raised to 450p from 415p.
Liberum said it was already above consensus numbers, so it is not changing its forecasts but it too sees demand remaining resilient, with winter bookings already recovering and summer bookings solid.
Industry supply constraints point to a supportive demand/supply balance, the broker said, which also points to the strong momentum in holidays, but easyJet’s valuation does not reflect the recent structural improvements to profitability.
'Buy' with an unchanged target price of 670p is Liberum's view.
Shares were up 5% today at 443.8p.