Deutsche Bank has downgraded easyJet PLC (LSE:EZJ) to 'hold' and upgraded Ryanair Holdings PLC (LSE:RYA) to 'buy', flagging rising macro uncertainty and weaker GDP expectations in Europe and the US.
The shift comes as part of a broader reassessment of European transport stocks, with analyst Andy Chu warning that earnings across the sector remain highly exposed to the economic cycle.
The move adds to easyJet’s recent turbulence. Off 15% year-to-date, shares in the budget carrier fell 1.3% on the downgrade and news it had been dumped from UBS's top mid-cap picks list
Deutsche also cut its target price for easyJet from 715p to 600p, citing downside risks to earnings forecasts.
Ryanair, by contrast, is now viewed more favourably. The bank lifted its recommendation from 'hold' and raised the price target from €20 to €25.50, backing the Irish carrier’s cost discipline and resilient business model. The stock was at a steady cruising altitude of €45.41 in afternoon trading.