Ryanair Holdings PLC (LSE:RYA) is a "buy-the-dip" opportunity, that's according to analysts at RBC Capital Markets, who have repeated an 'outperform' rating.
Albeit, RBC cut its price target to €29 from €31. At the revised level, meanwhile, the target implies more than 25% potential upside.
Analysts reduced earnings (EBIT) forecasts by around 16% on average across FY27E to FY29E, citing fuel costs around 2% higher and revenues around 2% lower than previously expected, and noted that the airline share Ryanair trades at around 6x FY27E-FY28E EV/EBITDA, below its 10-year median of roughly 7.2x, and around 2.1x FY26E P/NAV, close to decade-trough levels.
Elsewhere, analysts at Citi struck a more cautious near-term tone, saying costs are likely to disappoint despite a narrower-than-expected fourth-quarter net loss and stronger fares offsetting higher unit costs.
The American bank said early-summer demand stimulation had been needed, with first-quarter fares down mid-single digits, though pricing was trending flat year-on-year for the second quarter.
Citi estimated management comments imply FY27 cost per passenger excluding fuel will rise by a mid-single-digit percentage, around 2-3 percentage points worse than expected. It expects consensus FY27 net income to move towards €1.85 billion to €2.00 billion, versus Visible Alpha consensus of €2.35 billion. Even so, Citi took encouragement from reduced fuel supply fears, easing fare weakness into the second quarter and signs that chief executive contract talks are nearly concluded.