BofA Global Research expects Ryanair (RYA.IR) to post a decline in fiscal first-quarter fares, while noting that a recent improvement in short-haul bookings signals an improving outlook.
"We forecast Ryanair's F1Q fares will have fallen -4% y/y, in line with guidance of a [mid-single digit] decline. However, our discussions with airlines suggest European [short-haul] bookings have improved recently, implying upside to guidance and our estimate of flat y/y fares in F2Q," the research firm said Tuesday.
Accordingly, BofA boosted the buy-rated stock's price objective by 13% to 30 euros after applying a higher multiple to account for a brighter fare outlook.
Analysts also increased their fiscal 2027 net income estimate by 5% to 1.96 billion euros, 2% above market forecasts, citing lower fuel cost expectations. The research firm's EPS projections for fiscal 2028 and 2029 were trimmed, while its EPS assumption for fiscal 2027 was lifted.
Ryanair is scheduled to publish its fiscal first-quarter results on July 20.