RBC Capital Markets hikes target price on EasyJet.
RBC Capital Markets lifted its price target on easyJet to 715p from 600p on Monday, aligning it with Apollo's offer price and highlighting what it sees as further upside for the shares despite trimming near‑term estimates.
Source: Sharecast
The Canadian broker said it had cut top‑line and fuel‑cost assumptions following easyJet's 30 June update, noting softer fourth‑quarter load factors and broadly flat ticket yields. Booked‑to‑date load factors for Q4 were running about 2% lower year‑on‑year.
Even so, RBC raised its valuation to match Apollo's £7.15‑per‑share proposal, implying a 1.5–1.6x FY26 price-to-net asset value multiple, noting that its previous 600p target was based on a ten‑year median of 1.3x P/NAV and set after Castlelake's approach but before Apollo entered the fray.
RBC said easyJet shares currently trade 6% to 7% below the offer price, adding that the discount likely reflects the time value of money rather than doubts over whether the takeover will proceed.
RBC reiterated its 'sector perform' rating on the stock.
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