Ryanair, the European low‑cost airline, is rated Buy by Deutsche Bank with a €31.50 target, implying about 43% upside to the 22.02 closing price.
Analyst Jaime Rowbotham, in a note, described the group's fourth quarter as better‑than‑expected, with its net loss of €396m driven by stronger revenue, with fares per passenger up 8% year‑on‑year, and that end‑March net cash was €2.08bn with roughly €600m of the €750m buyback completed.
However, he cautions that management sees 1Q fares down by a mid‑single digit percentage because of Easter timing and hesitancy, 2Q fares broadly flat, and FY27 unit costs could rise by a mid‑single digit percentage.
DB points to a 8% fares uplift as the key issue to watch, and added that rising costs make the c.€2.3bn FY27 consensus profit vulnerable, and noted the shares have fallen c.24% year‑to‑date. Currently, the airline trades at about 10x FY27 EPS versus a one‑year forward average of c.14x even as management may extend the CEO's contract to 2032.
