easyJet plc (LSE:EZJ) is still a buy with broker UBS, which anticipates increased bookings in the months leading to and including summer, with its target share price increased to 815p from 775p.
The broker highlights that while fuel prices continue to rise easyJet is 60% hedged at US$504/MT and believes fare pressures shouldn’t deter customers from flying given pent-up demand to travel.
easyJet also possesses strong liquidity of £3bn and is rated at a discount to Ryanair and Wizz Air.
The impact of EU travel restrictions is also being overstated believes the broker, with key markets such as the UK now opening up again.
UBS has adjusted its forecasted earnings for 2022, down by 11% due to rising fuel costs, but has upgraded the following year by roughly 7% and has increased confidence surrounding holiday and travel market.
easyJet shares were up 2.7%, changing hands at 616p in afternoon trading.