Ryanair’s shares upgraded to ‘buy’
Dolmen yesterday re-rated Ryanair shares upward from 'neutral' to 'buy' after the oil price strength of recent weeks resulted in some profit-taking in the Ryanair share price.
Dolmen's Stuart Draper explained that with limited further upside risk to the oil price near term, they are now upgrading their 12-month price target from €6 to €7, an 18% upside. "The consensus forecast is that Ryanair will now generate earnings per share of 36.8c for the year ending 31/03/06. When recently recommending some profit-taking at the €6.50 level in the aftermath of the airline's Q3 results, our view was that there would be opportunities to buyback into one of our top 12 stock picks for 2005 under €6 later in the year," he said.
