MARKET TALK: Arbuthnot Cuts EasyJet Price Target

29th Jul 2010 14:34

1334 GMT [Dow Jones] Arbuthnot cuts EasyJet (EZJ.LN) price target to 450p from 480p following the company's 3Q update. The unchanged FY guidance masks several problems Arbuthnot says. A stronger revenue outlook offsets a worse cost picture, with greater operational problems necessitating extra spending. Despite encouraging demand, the brokerage remains cautious for the short term. It sees a number of potential negative catalysts in the near term, such as the dispute with the group's largest shareholder and the risk of further operational disruption. Neutral recommendation. Shares -2.5% at 393.4p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 29, 2010 09:34 ET (13:34 GMT)