EasyJet flies higher as BofA Merrill Lynch reiterates 'buy' rating
By Michele Maatouk
Date: Friday 20 May 2022
(Sharecast News) - EasyJet rallied on Friday after Bank of America Merrill Lynch reiterated its 'buy' rating on shares of the budget airline.
BofA said easyJet struck a bullish tone on the outlook for summer in its earnings call on Thursday. It pointed out that summer bookings have trended at 13% above 2019 levels for the past 10 weeks, with yields up 15% versus two years ago.
"This is the strongest yield increase highlighted by a European airline since the beginning of the pandemic, and above our expectations," Bank of America said.
It lifted its FY22 pre-tax profit estimate to £100m from breakeven, as it took into account higher loads over the summer quarter.
The bank also highlighted a strong balance sheet, which supports potential growth, and said easyJet was well positioned to benefit from a strong recovery in European leisure travel.
At 1440 BST, the shares were up 4.1% at 523.20p.
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