Brokerages Set Price Target of GBX 677 for easyJet Shares

Brokerages have established a consensus price target of GBX 677 for shares of easyJet plc (LON:EZJ), with a rating of “Moderate Buy” from six firms currently covering the airline. According to MarketBeat, three analysts recommend holding the stock, while an equal number advocate for buying it. The average price target reflects updates made by brokerages in the past year, indicating a potential upside for investors.

Several equities research analysts have recently expressed their views on easyJet shares. On September 19, 2023, Deutsche Bank Aktiengesellschaft lowered its price target from GBX 600 to GBX 535, maintaining a “hold” rating. In contrast, Panmure Gordon raised its price objective from GBX 730 to GBX 780, issuing a “buy” rating in a report published on October 10, 2023. Meanwhile, JPMorgan Chase & Co. reiterated a “neutral” rating on October 15, 2023, while Citigroup adjusted its target down from GBX 520 to GBX 500. Finally, Peel Hunt reaffirmed a “buy” rating, setting a target price of GBX 850 on October 11, 2023.

Insider Transactions Signal Confidence

In a show of confidence, company insiders have been actively purchasing shares. On September 18, 2023, insider Sue Clark acquired 7,680 shares at an average price of GBX 459 per share, amounting to a total investment of £35,251.20. Additionally, insider Harald Eisenächer bought 4,000 shares at an average cost of GBX 476 per share on November 26, 2023, totaling £19,040. In the last quarter alone, insiders have purchased a total of 11,712 shares valued at approximately $5.4 million, representing 15.15% of the company’s stock.

Shares of easyJet opened at GBX 485 on November 28, 2023. The airline has a market capitalization of £3.64 billion and a price-to-earnings ratio of 8.92. The company has also reported a beta of 2.49, indicating higher volatility compared to the overall market. Its fifty-day simple moving average stands at GBX 472.76, while the two-hundred-day simple moving average is noted at GBX 503.16.

Financial Performance and Future Expectations

easyJet recently announced its earnings results on November 25, 2023, reporting earnings per share (EPS) of GBX 66.40 for the quarter. The airline achieved a return on equity of 13.89% and a net margin of 4.27%. Looking ahead, research analysts project an EPS of approximately 67.34 for the current fiscal year.

easyJet positions itself as a low-cost, European, point-to-point airline, striving to leverage its operational efficiency and strong presence at primary airports to offer affordable travel options. The company aims to maintain its commitment to providing great value and exceptional customer service, making travel accessible to a wider audience. As the airline industry continues to navigate post-pandemic recovery, easyJet’s performance will be closely watched by investors and analysts alike.