Ryanair Holdings

Costs continuing to deflate; measured FY 2018 outlook with €600m buyback announced

  • Sectors : Airlines & Other Transport
  • Companies : Ryanair Holdings

Ratings and price correct at time of issue.

  • Ryanair Holdings

    Closing Price: 1775c

  • RATING 07/12/09

  • PREVIOUS RATING 02/11/09

    NEUTRAL

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.

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May 30 2017, 08:54 IST/BST

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