EasyJet (LON: EZJ) shares continued to climb in today's session despite the downgrade by Bernstein on Thursday.
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Analyst Daniel Roska downgraded easyJet shares to Market Perform from Outperform with a 550p price target.
The analyst noted that easyJet has improved commercially through the pandemic, with sales per passenger approaching around 70% above pre-pandemic levels and the EasyJet Holidays business becoming a meaningful profit contributor.
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In addition, Roska believes productivity improvements will allow more summer flying on the same number of planes.
However, he also stated that this is becoming better understood and he believes that still-to-come capacity restoration at legacy carriers presents a risk to fares into next winter, while the low-cost carrier also has to contend with rising carbon costs starting in 2024.
The downgrade by Bernstein contrasts with HSBC, who upgraded EasyJet to Buy from Hold on Wednesday with a 630p price target.
Meanwhile, Deutsche Bank raised its price target on EasyJet shares to 410p from 330p, maintaining a Sell rating on the stock.
Overall, analysts are split on the stock, with four assigning EasyJet shares a Buy rating, two assigning the stock a Hold rating, and four at Sell, according to TipRanks. The average price target is 454.7p, representing a potential 12% downside from current levels.
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