Market Report: EasyJet rises above industry turbulence
Thursday 17 July 2014
Fears that budget airlines were feeling the squeeze were pushed aside yesterday as an army of analysts declared EasyJet worth a buy.
Its shares were down about 30 per cent in the past three months and recent profit warnings issued by Lufthansa and Air France gave rise to concerns of industry turbulence.
Tony Cross, a market analyst at Trustnet Direct, said: “The budget airline has been beaten back of late by questions regarding over-capacity of its long-haul rivals, leaving the shares by many accounts somewhat undervalued – both Numis and Goldman have now set a target price on the shares of around 60 per cent higher.”
EasyJet, ahead of its third-quarter update next week, shot up 80p to 1,357p yesterday.
Remaining on the flying theme, rumours emerged from the Farnborough International Airshow that aerospace engineer Meggitt could be a bid target from a US suitor. The engineer took top spot on the Footsie – up nearly 10 per cent or 46.9p to 537p.
The wider market was flying high with renewed optimism and miners rose on positive growth data from China, with Rio Tinto up 90p to 3,334.5p.
The FTSE 100 climbed 74.22 points to 6,784.67.
A 16 per cent revenue rise at Speedy Hire, thanks to the construction boom, drove shares in the small-cap fleet and equipment rental firm up 3p to 56p.
Technology tools-maker Oxford Instruments added 44p to 1,245p as first-quarter orders exceeded those of a year earlier.
Office space group Workspace said its rent roll was up 4.6 per cent in the last quarter and it advanced 4p to 594.5p.
Aim-listed carpet maker Victoria tumbled nearly 60 per cent – down 275p to 187.5p – after it paid out a special dividend of 292p a share. Executive chairman Geoff Wilding subscribed for up to 50 per cent of the enlarged share capital as part of an incentive package; he agreed to return around £21m to shareholders by May 2015.
APC Technology Group warned sales and profit will be below expectations. It has won a contract for fridge lights but failed to glow and fell 4p to 334.5p.
Lincoln MP Karl McCartney 'denied all knowledge' of the Twitter activity
Detective novelist who wrote Death comes to Pemberley passed away peacefully at her home, aged 94
Sites using the popular Gigya comment platform were attacked by the Syrian Electronic Army (SEA)
- 1 Sean Abbott: Messages of support flood in for bowler following death of batsman Phil Hughes
- 2 Exodus Gods and Kings: Ridley Scott never considered casting 'Mohammad so-and-so from such-and-such' in lead role
- 3 Girl, 7, gets Tesco to remove 'stupid' sign suggesting superheroes are 'for boys'
- 4 This letter from a reader explains why women can’t play football
Black Friday 2014: Opening times for Asda, John Lewis, GAME, PC World and Argos
Miss Honduras Maria Jose Alvarado's stylist Luis Alfredo Garcia is found stabbed to death
Sean Abbott: Messages of support flood in for bowler following death of batsman Phil Hughes
Dr Lam Hoe Yeoh: Voyeur doctor jailed for eight years after using network of hidden cameras to film patients, colleagues and friends on the toilet
'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Rochester aftermath: Sacking of Emily Thornberry will make work of Labour MPs '10 times harder'
iJobs Money & Business
£20000 - £22000 per annum: Argyll Scott International: Service Desk Analyst Re...
£30000 - £250000 per annum: Recruitment Genius: A global Rolling Spot FX, Comm...
£Attractive Package: Citifocus Ltd: Chartered accountant (ACA or CPA), must be...
£6000 - £60000 per annum + Bonus and Benefits: Ampersand Consulting LLP: UI De...