A summer of discontent? Buy the structural winner, Ryanair

  • Sectors : Airlines
  • Companies : Lufthansa | easyJet | Air France KLM | IAG | Wizz Air Holdings | Ryanair Holdings | Norwegian Air


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Air France KLM NEUTRAL 22/08/16 Outperform 25/01/16 494c
easyJet NEUTRAL 22/01/15 Outperform 17/06/14 1105p
IAG OUTPERFORM 10/09/14 Neutral 15/01/14 445c
Lufthansa NEUTRAL 16/10/15 Underperform 22/01/15 1040c
Norwegian Air NEUTRAL 01/09/15 Underperform 22/01/15 nok30280
Ryanair Holdings OUTPERFORM 07/12/09 Neutral 02/11/09 1195c
Wizz Air Holdings NEUTRAL 21/06/16 N/A N/A 1588p


The European airline sector has lost 20% of its value by market cap in the last two months, driven by 16% earnings downgrades. This report reviews key recent trends across the sector and the near-term outlook into the end of the year. We think Ryanair stands out as the most compelling investment case at current share price levels, screening well on structural growth, defensiveness and valuation metrics. We expect greater granularity on ancillaries to be a catalyst for the remainder of the year. We also still see good long-term value in IAG, but the stock lacks positive catalysts in the very short term.

Download full report with analyst certification and important disclosures

Aug 22 2016, 08:31 IST/BST