MARKET TALK: Charles Stanley Initiates EasyJet At Reduce

7th Jul 2010 06:59

0559 GMT [Dow Jones] Charles Stanley initiates easyJet (EZJ.LN) at reduce with a 334p target. Says further expansion of the fleet will only create shareholder value if the new aircraft achieve a pretax profit per seat greater than ever achieved before. Says for this to succeed, a substantial number of factors must be achieved. These include the company to deliver its GBP190M cost reduction program as planned; for yields to rise and the recovery of asset utilization to '07 levels. Says the current share price implies success in getting margins up to a level never seen before and keeping them there. Therefore, the brokerage sees substantial downside risk. Shares closed Tuesday at 400p.([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 07, 2010 01:59 ET (05:59 GMT)