Redburn-Atlantic raises Ryanair price target on cost position, demand

Published 06/11/2025, 09:51 AM
Redburn-Atlantic raises Ryanair price target on cost position, demand

Redburn-Atlantic raised its price target on Ryanair stock to EUR28.00 from EUR25.00 on Wednesday, while maintaining a Buy rating on the Irish low-cost carrier. The airline, with a market capitalization of $29.7 billion, has shown remarkable momentum with a 27% gain over the past six months according to InvestingPro data.

The research firm cited Ryanair’s strong operational performance, noting that "The Ryanair machine is firing on all cylinders." With annual revenue of $15.1 billion and a healthy gross margin of 26.2%, the company has earned an "GREAT" financial health rating from InvestingPro. Redburn-Atlantic highlighted that the airline’s non-fuel unit costs, while increasing, are in a better relative position compared to competitors than they were in 2019.

The firm expects cost inflation to moderate in the medium term as Ryanair takes delivery of new aircraft. Lower fuel costs will provide additional financial relief for the airline, according to the research note.

Redburn-Atlantic pointed to a favorable industry supply/demand balance that should benefit Ryanair. The firm also mentioned supportive route-level dynamics that are expected to drive better-than-anticipated pricing growth this year.

Shares of Ryanair (NASDAQ:RYAAY) have been targeted for an "upgrade story" that "remains in full swing," according to Redburn-Atlantic’s analysis, reinforcing the firm’s continued Buy recommendation on the stock. Trading near its 52-week high with a P/E ratio of 16.3, InvestingPro analysis reveals 8 additional key insights about Ryanair’s investment potential in their comprehensive Pro Research Report.

In other recent news, Ryanair has been the focus of several analyst updates and strategic announcements. The airline’s fiscal fourth-quarter 2025 results exceeded expectations, reporting a net loss of €328 million, which was better than anticipated. Ryanair plans a €750 million share buyback over the next 12 months, enhancing shareholder value alongside efforts to manage its €2 billion debt. Analysts at Bernstein SocGen have raised the price target for Ryanair shares to EUR27.00, maintaining an Outperform rating, while Deutsche Bank also lifted its target to EUR27.00, reiterating a Buy rating. JPMorgan has further increased its price target to EUR28.00, citing a strong outlook for summer fares and a new buyback program.

Ryanair’s performance has been bolstered by robust passenger growth, with April numbers showing a 5.8% increase, totaling 18.3 million passengers. The airline’s load factor reached 93%, indicating efficient capacity utilization. Looking forward, Ryanair anticipates a first-quarter fare increase and projects 206 million passengers for fiscal year 2026. Despite rising non-fuel unit costs, Ryanair’s strategic financial management and fare growth have positioned it for strong profitability, as reflected in the positive analyst ratings and revised earnings estimates. The airline’s solid financial performance and strategic initiatives have contributed to a confident outlook from major financial institutions.

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