Analyst Sees EasyJet Shares Moving Further Lower

EasyJet (LON: EZJ) shares have started 2026 on the back foot, extending a difficult run after a lackluster performance last year. 

The stock is down 1.9% over the past 12 months and has already fallen 5.1% year-to-date as of Jan. 15. The past week has been particularly weak, with shares sliding more than 4%.

The latest pressure follows a downgrade from Deutsche Bank, where analyst Jaime Rowbotham cut the rating to Sell from Hold and lowered the price target to 465p from 535p. 

The bank warned of a “tough” short-haul market in 2026 and said airlines with the leanest cost structures,  particularly Ryanair, are better positioned to outperform as competition stiffens. 

Deutsche added that EasyJet is unlikely to keep pace with peers that enter the year “fitter” and more efficient.

The call contrasts with slightly more optimistic commentary earlier this week from Barclays. Analyst Andrew Lobbenberg lifted his price target to 700p from 675p while maintaining an Overweight rating, suggesting the firm still sees scope for upside despite near-term sector headwinds.

The downgrade also follows a cautionary move in December, when Kepler Cheuvreux cut EasyJet to Hold from Buy and trimmed its target to 520p from 650p. 

The firm argued that although 2025 offered strong macro tailwinds, from robust U.K./U.S. and EU growth to stable fuel prices, investors showed little appetite to re-rate the stock. 

With economic momentum expected to slow and competition intensifying this year, Kepler said it does not see a weaker backdrop delivering a stronger outcome.