JP Morgan Cazenove has slashed the price targets for three budget airlines, but still sees ‘buy’ cases for two.
“In the current financial year we expect larger losses than we previously modelled,” it said in a note to clients in which it reduced earnings per share forecasts for the next two years by 31% and 10% respectively.
JPMC’s valuation for easyJet (LON:EZJ) was dropped 20% to 530p, as the brokerage maintained its neutral rating on the carrier.
Ryanair’s (LON:RYA) price target is was cut by 15% to €13.00, while WizzAir’s (LON:WIZZ) was pruned by 6% to €39.50.
With 15% and 25% ‘upside’ respectively, shares in both companies are rated ‘overweight’.