In a note to clients this morning, Christopher Combe wrote that Ryanair appeared “relatively more attractive” following stronger rallies from the likes of International Consolidated Airlines Group PLC (LON:IAG) and easyjet PLC (LON:EZJ) so far this year.
Ryanair itself has enjoyed a strong 2017 in terms of share price momentum, but its 28% gain still lags behind the sector average of 60%.
As well as looking cheap compared to its fellow airliners, Combe also upgraded Ryanair's first quarter net income by 20% to €372mln – a 46% year-on-year rise.
He expects growth to be driven by increased passenger numbers and better-than-expected fare prices, while he adds that Ryanair should benefit from falling fuel costs too.
The analyst still has the stock as ‘overweight’, but upped his price target by 5% to €21.50 (from €20.50).
Towards the end of the morning session, Ryanair shares were off 0.1% at €18.70.