Broker snap: easyJet still 'neutral' despite strong March

6th Apr 2011 12:31

Credit Suisse sticks with its 'neutral' rating on budget airline easyJet despite March passenger volumes being 11.9% higher than the same time last year."March figures suggest only a marginal impact from Egypt disruption but we re-iterate we expect a first half pre-tax profit figure towards the low end of the guided £140-160m loss range with second quarter revenue per seat down 4%," the broker said.The changes the broker made on 25 March are kept: 2011 pre-tax profit estimates were reduced by 20% to £175m (after factoring in jet fuel at $1,050m/t for unhedged fuel requirements).It also expects easyJet's revenue per seat to rise by 1% year-on-year in 2011 and by 5% in 2012, "however sluggish UK/European consumer spending suggests limited upside to these estimates."The broker keeps its target price, which had been previously reduced by 32% to 330p.---bc