Low cost carrier EasyJet PLC (LON:EZJ) flew higher this morning as City firm Cantor upgraded it to 'buy' from 'hold'.
Robin Byde, the transport analyst, said the firm with a market cap of £4.1bn had a low cost business model, which was resilient and generated strong profits in previous difficult macro environments.
He reckons the share price fall of 40% in the year so far on concerns about trading, disruption to operations and Brexit is overdone.
"We believe that travel spend across Europe will be more resilient than some investors fear.
"Moreover, EZJ can use its financial strength to discount aggressively and build share. Our conservative forecasts build-in a weaker pricing scenario. The stock is trading at a 24% discount to its five-year average PE."
Cantor also lifts the target price to £13 from £12.
Shares in EZJ added 2.69% to stand at 1,067p.
Meanwhile, Liberum has repeated a strong 'buy' on online retailer boohoo plc (LON:BOO) and lifted the target price to 90p up from 80p.
It notes that the firm has today delivered a trading update earlier than expected leading to upgrades.
"Group trading is now expected to deliver sales growth of between 28% and 33% in FY17E up from previous guidance of 25% and 30%.
"Taking the mid-point of the new guidance and with growth exceeding expectations across all markets, operational gearing benefits are also expected to deliver better margins than we had previously expected."
Also in brokerland, Citi lifts the target on pub chain JD Wetherspoon plc (LON:JDW) to 980p from 840p and repeats a 'buy' recommendation. On the downgrade front, insurer Aviva (LON:AV.) was moved to 'neutral' from 'outperform' by Macquarie.