Market Report: EasyJet rises above industry turbulence


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.

Start your day with The Independent, sign up for daily news emails
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Editor-in-chief - Financial Services - City, London

£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Guru Careers: Management Accountant

£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...

Guru Careers: Project Manager / Business Analyst

£40-50k + Benefits.: Guru Careers: A Project Manager / Business Analyst is nee...

Day In a Page

General Election 2015: ‘We will not sit down with Nicola Sturgeon’, says Ed Balls

'We will not sit down with Nicola Sturgeon'

In an exclusive interview, Ed Balls says he won't negotiate his first Budget with SNP MPs - even if Labour need their votes to secure its passage
VE Day 70th anniversary: How ordinary Britons celebrated the end of war in Europe

How ordinary Britons celebrated VE Day

Our perception of VE Day usually involves crowds of giddy Britons casting off the shackles of war with gay abandon. The truth was more nuanced
They came in with William Caxton's printing press, but typefaces still matter in the digital age

Typefaces still matter in the digital age

A new typeface once took years to create, now thousands are available at the click of a drop-down menu. So why do most of us still rely on the old classics, asks Meg Carter?
Discovery of 'missing link' between the two main life-forms on Earth could explain evolution of animals, say scientists

'Missing link' between Earth's two life-forms found

New microbial species tells us something about our dark past, say scientists
The Pan Am Experience is a 'flight' back to the 1970s that never takes off - at least, not literally

Pan Am Experience: A 'flight' back to the 70s

Tim Walker checks in and checks out a four-hour journey with a difference
Humans aren't alone in indulging in politics - it's everywhere in the animal world

Humans aren't alone in indulging in politics

Voting, mutual back-scratching, coups and charismatic leaders - it's everywhere in the animal world
Crisp sales are in decline - but this tasty trivia might tempt back the turncoats

Crisp sales are in decline

As a nation we're filling up on popcorn and pitta chips and forsaking their potato-based predecessors
Ronald McDonald the muse? Why Banksy, Ron English and Keith Coventry are lovin' Maccy D's

Ronald McDonald the muse

A new wave of artists is taking inspiration from the fast food chain
13 best picnic blankets

13 best picnic blankets

Dine al fresco without the grass stains and damp bottoms with something from our pick of picnic rugs
General Election 2015: Ed Miliband's unlikely journey from hapless geek to heart-throb

Miliband's unlikely journey from hapless geek to heart-throb

He was meant to be Labour's biggest handicap - but has become almost an asset
General Election 2015: A guide to the smaller parties, from the the National Health Action Party to the Church of the Militant Elvis Party

On the margins

From Militant Elvis to Women's Equality: a guide to the underdogs standing in the election
Amr Darrag: Ex-Muslim Brotherhood minister in exile still believes Egypt's military regime can be replaced with 'moderate' Islamic rule

'This is the battle of young Egypt for the future of our country'

Ex-Muslim Brotherhood minister Amr Darrag still believes the opposition can rid Egypt of its military regime and replace it with 'moderate' Islamic rule, he tells Robert Fisk
Why patients must rely less on doctors: Improving our own health is the 'blockbuster drug of the century'

Why patients must rely less on doctors

Improving our own health is the 'blockbuster drug of the century'
Sarah Lucas is the perfect artist to represent Britain at the Venice Biennale

Flesh in Venice

Sarah Lucas has filled the British pavilion at the Venice Biennale with slinky cats and casts of her female friends' private parts. It makes you proud to be a woman, says Karen Wright
11 best anti-ageing day creams

11 best anti-ageing day creams

Slow down the ageing process with one of these high-performance, hardworking anti-agers