Aer Lingus

Good FY results; it's all about the bid

  • Sectors : Airlines
  • Companies : Aer Lingus

Ratings and price correct at time of issue.

  • Aer Lingus

    Closing Price: 223c

  • RATING 19/12/14

  • PREVIOUS RATING 27/02/13

    NEUTRAL

DAVY VIEW

FY 2014 operating results came to €72m, up 17.8% – well ahead of last year and in line with our forecast of €71.8m. However, the stock is all about the proposed IAG bid. We do not believe that another bid as favourable will materialise – or at least not one that would get past the regulatory authorities. The current bid substantially increases growth opportunities while reducing risk levels in the uncertain world of aviation. If the bid fails, the stock will almost certainly return to pre-bid levels. For industry, individual airline and national reasons, this deal should happen. One can come to no other conclusion based on the facts.

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Feb 24 2015

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