Broker snap: EasyJet shares should fly higher than Ryanair

13th Jan 2014 12:41

Credit Suisse upgraded budget airline easyJet, saying it has scope to boost fares and its shares should be trading higher than those of rival Ryanair.The broker lifted its recommendation on easyJet to outperform from neutral with a price target of 1,988p, up from 1,518p.It believes easyJet's shares, which rose 33.5p to about 1,683p in early afternoon trading in London, should be trading at a premium to Ryanair, which blamed two profit warnings last year on price competition, fuel costs and exchange rates.Credit Suisse said easyJet had the potential to raise fares while still remaining competitive, with national flag carriers charging about 65% more. EasyJet also should be able to cash in on restructuring and consolidation among flag carriers to improve its continental European network."We introduce a new US parallel in JetBlue, which has grown pricing to near parity with the US majors," the broker said.PW