Ryanair share price target upgraded

RYANAIR’S proven ability to manage costs underpins Goodbody Stockbrokers’ latest upgrade of the airline’s share price target to €8.50, an upside of 37%.

Goodbody’s aviation analyst Joe Gill yesterday published a 20-page note on Ryanair arguing that investors, who understandably have been spooked by oil prices, should refocus on the progress made by Ryanair in cost management.

“After lowering per passenger costs by over 30% in the past three years ... initiatives launched over the past year, and in particular the new Boeing deal, will take that lower again. This is key to building shareholder value while growing volumes by over 20% each year,” he said. Mr Gill’s analysis demonstrates how Ryanair profits can grow over the next seven years, while allowing for a compound annual decline of 2% in fares over that period.