DAVY VIEW

Following a turbulent summer for the UK holiday sector, driven by Middle East disruption, fuel availability concerns and a late booking curve, trading conditions appear to be stabilising. Jet2 is well positioned for growth, underpinned by a differentiated customer proposition, strong operational execution and a broader pool of institutional capital from its forthcoming move to the main market from AIM. We raise our Jet2 price target (PT) to 1890p and upgrade to an ‘Outperform’ rating. We remain positive on On the Beach, with recent trading indicating positive booking momentum into FY27. This is bolstered by 17% booking growth over the last eight weeks and a substantial net cash position that continues to support shareholder returns. We lower our On the Beach PT to 230p (from 250p) and retain our ‘Outperform’ rating.