News

Europe Markets: European airlines set for multi-year recovery, JPMorgan says as it upgrades Ryanair

European aviation should be set for a multi-year recovery, say JPMorgan Cazenove analysts, as COVID-19 moves from a pandemic to an endemic.

Ryanair RYA, +3.42% shares jumped 5% as JPMorgan Cazenove upgraded the airline to overweight from neutral, saying the airline will generate strong free cash flow and strong margins as end demand recovers given its ultra-low costs. British Airways owner International Airlines Group IAG, -0.21% rose just 1% as JPMorgan downgraded it to neutral from overweight, warning of the need to issue equity given its net debt of around €13 billion.

JPMorgan also reiterated an overweight on Wizz Air WIZZ, +0.11%, and kept easyJet EZJ, +2.24% at neutral.

The Stoxx Europe 600 SXXP, +0.28% edged up 0.1% to 481.40, helped by gains for the travel sector as well as utilities such as Iberdrola IBE, +2.59%.

Of the major regional indexes, the German DAX DAX, +0.41% gained 0.2%, the French CAC 40 PX1, +0.10% declined 0.2% and the U.K. FTSE 100 UKX, -0.38% declined 0.2%.

Puma PUM, +1.53% shares rose 2%, after forecasting sales growth of 32% on the year, that would lead to operating income of €557 million. Puma had previously targeted sales growth of at least 25% and operating income of up to €500 million. Analysts at UBS said the results, though sparse in details, confirm “the brand’s continued exceptional momentum and the company’s agile operations, despite the supply chain issues impacting its peers.” Shares of Puma rival Adidas ADS, +1.22% edged up 0.5%.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News