(News Bulletin 247) – Deutsche Bank on Tuesday raised its recommendation on easyJet shares from ‘sell’ to ‘buy’, with a price target raised from 410 to 580 pence.
In a research note, the German bank justifies its increase by the renewed optimism surrounding the prospects for the British economy, which have “significantly improved” according to its economists.
However, the low-cost airline easyJet is the most exposed in the United Kingdom, recalls the German establishment, with around 40% of its profits made in the country before the Covid crisis.
Deutsche Bank also mentions a valuation that seems attractive to it, in particular on the basis of an enterprise value/EBITDA ratio of 4.2x for the current financial year.
Its new price target thus shows an upside potential of 25% at current levels.
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