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Jan 20 2020, 06:30 GMT
Airlines
Acute supply constraints underpin pricing optimism – our 2020 vision
- Sectors : Airlines
- Companies : Lufthansa | easyJet | Air France KLM | IAG | Wizz Air Holdings | Ryanair Holdings | Norwegian Air
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| Air France KLM | NEUTRAL | 20/01/20 | Outperform | 21/01/19 | 983c |
| easyJet | NEUTRAL | 20/06/18 | Outperform | 12/12/17 | 1480p |
| IAG | OUTPERFORM | 31/08/18 | Neutral | 22/08/17 | 677.8p |
| Lufthansa | NEUTRAL | 30/10/18 | Outperform | 27/01/17 | 1528c |
| Norwegian Air | NEUTRAL | 01/09/15 | Underperform | 22/01/15 | 4220nok |
| Ryanair Holdings | OUTPERFORM | 07/12/09 | Neutral | 02/11/09 | 1572c |
| Wizz Air Holdings | NEUTRAL | 09/09/19 | Outperform | 20/06/18 | 4260.0p |
DAVY VIEW
The European airlines space is on an improving trajectory, both structurally and cyclically. The unwind of Brexit risk has aided sector valuations in recent months, and we believe supply constraints will drive further operating leverage into the summer season. The ‘tail’ in Europe is barely breakeven and we see inefficient capacity being pushed from the market in the medium term. We retain our ‘Outperform’ ratings on IAG and Ryanair – the structural winners.
