DAVY VIEW

As has been the case for three consecutive fiscal years, Ryanair has concluded FY 2017 with lower ex-fuel unit costs and an enhanced competitive positioning. Net income of €1.316bn was in line with our expectations and within the previously guided range, while FY 2018 guidance implies further high-single-digit net income growth. Reflecting its continued stellar cash generation, the company’s Board has approved a further €600m buyback programme, implying that EPS growth will likely be in the double-digits. We will move our net income estimate modestly towards the mid-point of the new range. Given the cash generation and continued strong strategic position, we reiterate our ‘Outperform’ rating and move our 12-month price target to €18.50.