Brokers slash Ryanair forecasts
30.07.08
Ryanair has been hit with a raft of projected share price downgrades, as stockbrokers moved en masse to slash their forecasts following this weeks poor financial results and profit-warning, the Belfast Telegraph reports.
Merrion ditched its 'buy' recommendation in favour of 'reduce', and slashed its price target from an above-consensus €4.25 to a bottom-of-the-range €2. Fellow Dublin broker Dolmen downgraded its recommendation from 'buy' to 'neutral' and cut its price target from €3.50 to €2.90, while NCB reduced its price target from €2.80 to €2.55 while retaining a 'hold' recommendation on the stock.
ABN Amro retained its 'hold' rating on the stock but cut its price target from €3.00 to €2.70, while other brokers also took a red pen to their target price for the 'long-time stock market darling', the newspaper reports.
The downgrades came after analysts moved rapidly to recast their earnings forecast following Ryanair's bombshell that fares could actually fall by up to 5% this year despite previous guidance of a 5% fare rise. That could see Ryanair report a loss of up to €60m for the year, the airline said, sharply down on its €481m after tax earnings in 2008.
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