Broker snap: easyJet is a 'key pick' in airline sector, says Investec

15th May 2013 10:43

Shares in budget airline easyJet were flying high on Wednesday morning after the company's in-line first-half results, with Investec saying that full-year forecasts look 'well underpinned'."easyJet's H1 results were in line with our forecasts/guidance (loss before tax of £61m), while the outlook statement implies our FY13E above-consensus figures look eminently achievable," said analyst James Hollins."We are also well ahead of consensus on FY14E (c8.0%) and project that consensus should catch up given the strength of trading and beneficial current jet fuel pricing."While there was no major aircraft order announced as speculated by some analysts, Hollins said that it "appears close" with plans for an order to cover growth from 2017 as well as a bridging programme for growth/fleet upgrades from 2015-2017.The broker said that easyJet's outlook statement suggests that its above-consensus profit before tax estimate of £413.7m for this year looks "well underpinned, with possible scope for a marginal upgrades (c1-2%)".Hollins concluded: "Ahead of any changes, we retain our 'buy' and [...] 1,200p target price, with easyJet representing our key pick in the airlines sector."The stock was up 5.66% at 1,194p by 10:48.BC