JP Morgan remains upbeat on Ryanair Holdings PLC (LSE:RYA), highlighting its confidence in strong summer pricing and controlled cost inflation.
After hosting Ryanair’s CFO Neil Sorahan at an investor conference in New York, JPM noted that the airline expects solid fare growth for the peak travel season, even as some airlines express caution over softening demand in certain markets.
The budget carrier, known for its low fares and no-frills approach, is keeping a close eye on airport costs as it enters a slower growth phase.
While inflationary pressures remain a concern, Ryanair expects more stability outside of rising air traffic control charges.
JPM believes Ryanair is well-positioned as a relatively safe bet in the airline sector, particularly if concerns over weakening demand for long-haul transatlantic routes begin to materialise. The recent dip in fuel prices also plays in Ryanair’s favour.
JPM reiterates its bullish stance on the stock, maintaining an "overweight" rating with a €26 price target.
In afternoon trading, the stock was up 0.5% at €46.65.