The average of price targets set by Wall Street analysts indicates a potential upside of 27.9% in Ryanair (RYAAY). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Ryanair Holdings PLC (LSE:RYA) has signalled hundreds of internal flights could be axed if chancellor Rachel Reeves hikes aviation tax in the upcoming Autumn Budget. Cutbacks would be inevitable were air passenger duty raised, Ryanair boss Michael O'Leary said on Thursday, given the likely knock to demand from higher prices.
Ryanair's CEO Michael O'Leary said that in his 30 years in the airline industry he had never seen capacity constraints like those he's facing now.
Ryanair Holdings PLC (LSE:RYA) has said it will reduce its forecasts for passenger numbers next year because of delays to deliveries from Boeing, its main plane supplier. Talking to Reuters, Michael O'Leary, the airline's chief executive, said if an expected 20 planes due this year come through in the first two months of 2025 that would be manageable.
Ryanair will have to revise down its passenger traffic estimates for next year because of expected aircraft delivery delays from Boeing , the budget airline's group CEO Michael O'Leary told Reuters on Wednesday.
The average of price targets set by Wall Street analysts indicates a potential upside of 34.1% in Ryanair (RYAAY). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
RYAAY's 1Q25 revenues declined 2% YoY, with gross and operating margins significantly deteriorating due to higher staff costs and airport charges. The revenue outlook remains deteriorated due to poor consumer confidence, resulting in materially lower air fares. Operating margins will continue to be under pressure due to the air traffic control situation in Europe.
Ryanair Holdings PLC (LSE:RYA) is reducing its German flight offerings by 12% next summer in protest of what the budget airline considers excessively high aviation taxes and cecurity and air traffic control fees imposed by the German government. Up to 1.8 million seats will be cut across 22 routes, with the airline ceasing all flights to Dortmund, Dresden and Leipzig.
Ryanair shares present a buy opportunity at ~$43, significantly down from their 52-week high of $60.29, amidst robust European travel demand. The company shows financial health with increased revenue, reduced debt, and an enticing PE ratio below the industry average. Despite short-term challenges like union strikes and geopolitical risks, Ryanair's long-term outlook is positive, supported by rising European consumer confidence.
Ryanair is the most efficient and cost-effective airline, showing resilience amidst high fuel prices, labor costs, and demand weakness. The stock is undervalued, trading at a significant discount to peers and its historical average, with a strong buy rating. RYAAY's robust balance sheet, shareholder-friendly policies, and impressive operational efficiency make it a standout in the commercial airline sector.
Ireland's data watchdog said Friday it will probe whether budget airline Ryanair's use of facial recognition to check the identity of customers booking through third-party websites violates EU privacy laws.