RBC Updates Estimates for Ryanair Ahead of Fiscal Q1 Results; Outperform Rating Kept
RBC Capital Markets adjusted its model for Ryanair (RYA.IR), tweaking its earnings forecasts for the Irish budget airline ahead of its fiscal first-quarter results due July 20. "We update macro forecasts ahead of 1Q results, and reflect a lower oil price since our last update in May. We firm EBIT and EPS forecasts by ~2-3% on average over FY27E-FY29E (weighted towards FY27E-FY28E)," the research firm said Monday. Additionally, analysts forecast higher fuel unit costs in fiscal 2028, as their 2027 estimates included "protection" from pre-war fuel hedges, leaving their forecasts below market expectations. Against this backdrop, RBC cut its revenue projections for 2028 and 2029, while increasing its forecast for 2027. The stock remains rated at outperform, with an unchanged price target of 29 euros.
RBC Capital Markets adjusted its model for Ryanair (RYA.IR), tweaking its earnings forecasts for the Irish budget airline ahead of its fiscal first-quarter results due July 20. "We update macro forecasts ahead of 1Q results, and reflect a lower oil price since our last update in May.
We firm EBIT and EPS forecasts by ~2-3% on average over FY27E-FY29E (weighted towards FY27E-FY28E)," the research firm said Monday.
Additionally, analysts forecast higher fuel unit costs in fiscal 2028, as their 2027 estimates included "protection" from pre-war fuel hedges, leaving their forecasts below market expectations.
Against this backdrop, RBC cut its revenue projections for 2028 and 2029, while increasing its forecast for 2027.
The stock remains rated at outperform, with an unchanged price target of 29 euros.