(News Bulletin 247) – Oddo BHF reiterates its Outperformance opinion on Ryanair shares and raises its target price from 18.5 to 20 E.

“The acceleration of market share gains and the good performance of capacities plead in favor of a good orientation of pricing which, in our view, will compensate for the inflation on unit costs excluding fuel”, explains the analyst.

Given the generation profile of the FCF, Oddo BHF considers the objective of returning to zero net debt by April 2024 more than credible and models ‘a regular dividend from financial year FY 2024 with a payout rate of 30%’ .

For the analyst, the valuation remains attractive ‘ in view of the company’s fundamentals with a 2023/24e EV/EBITDA multiple of 5.9x falling to 4.5x in 2024/25e and the weakest performance of the share since the start of the year we might unjustified in view of the fundamentals’.

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