EasyJet (LON: EZJ) shares received a boost after RBC Capital upgraded the airline to Outperform from Sector Perform, raising its price target to 650p from 570p this week.
The low-cost airline’s stock, which is up around 0.6% in early Wednesday trading, has risen by more than 20% in the last month, adhering to a solid uptrend.
It is currently trading at levels last seen in December 2024, and if the momentum continues, it could be set to break above the key 590p a share area.
In its note to clients, RBC Capital cited strong UK travel demand and supportive external conditions as key reasons for the upgrade.
RBC analysts said EasyJet is “well positioned in an environment of strong UK travel demand, amplified fuel and FX tailwinds, and firm forecasts from FY26.”
They believe there is potential for the company to outperform even their above-consensus expectations for fiscal 2026.
The note highlighted several internal drivers that could further boost earnings, including the airline’s efforts to mitigate winter losses, expand its Holidays business, and upgrade its fleet with larger aircraft.
RBC concluded that EasyJet’s strategic actions, alongside a favourable macro backdrop, create a compelling opportunity for further share price appreciation. The raised price target of 650p reflects this improved outlook.
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