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Jan. 20, 2022, 9:55 a.m. EST

European airlines set for multi-year recovery, JPMorgan says as it upgrades Ryanair

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By Steve Goldstein

European aviation should be set for a multi-year recovery, say JPMorgan Cazenove analysts, as COVID-19 moves from a pandemic to an endemic.

Ryanair /zigman2/quotes/205429530/delayed IE:RYA +3.42% shares jumped 5% as JPMorgan Cazenove upgraded the airline to overweight from neutral, saying the airline will generate strong free cash flow and strong margins as end demand recovers given its ultra-low costs. British Airways owner International Airlines Group /zigman2/quotes/208070069/delayed UK:IAG +3.08% rose just 1% as JPMorgan downgraded it to neutral from overweight, warning of the need to issue equity given its net debt of around €13 billion.

JPMorgan also reiterated an overweight on Wizz Air /zigman2/quotes/210449062/delayed UK:WIZZ +4.30% , and kept easyJet /zigman2/quotes/202825892/delayed UK:EZJ +2.68% at neutral.

The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +1.47% edged up 0.1% to 481.40, helped by gains for the travel sector as well as utilities such as Iberdrola /zigman2/quotes/202060935/delayed ES:IBE +0.14% .

Of the major regional indexes, the German DAX /zigman2/quotes/210597999/delayed DX:DAX +1.55% gained 0.2%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +1.39% declined 0.2% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.83% declined 0.2%.

Puma /zigman2/quotes/203655455/delayed XE:PUM +2.52% shares rose 2%, after forecasting sales growth of 32% on the year, that would lead to operating income of €557 million. Puma had previously targeted sales growth of at least 25% and operating income of up to €500 million. Analysts at UBS said the results, though sparse in details, confirm “the brand’s continued exceptional momentum and the company’s agile operations, despite the supply chain issues impacting its peers.” Shares of Puma rival Adidas /zigman2/quotes/206448829/delayed XE:ADS +2.24% edged up 0.5%.

/zigman2/quotes/205429530/delayed
IE : Ireland: Dublin
14.07
+0.47 +3.42%
Volume: 1.17M
May 17, 2022 12:07p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€15.46 billion
Rev. per Employee
€249,281
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/zigman2/quotes/208070069/delayed
UK : U.K.: London
125.66 p
+3.76 +3.08%
Volume: 11.89M
May 17, 2022 12:08p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£6.12 billion
Rev. per Employee
£128,176
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/zigman2/quotes/210449062/delayed
UK : U.K.: London
3,079.00 p
+127.00 +4.30%
Volume: 78,513
May 17, 2022 12:07p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£3.16 billion
Rev. per Employee
£250,991
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/zigman2/quotes/202825892/delayed
UK : U.K.: London
513.00 p
+13.40 +2.68%
Volume: 2.71M
May 17, 2022 12:07p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£3.77 billion
Rev. per Employee
£112,154
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/zigman2/quotes/210599654/delayed
XX : STOXX
440.06
+6.39 +1.47%
Volume: 0.00
May 17, 2022 1:08p
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/zigman2/quotes/202060935/delayed
ES : Spain: Madrid
10.80
+0.02 +0.14%
Volume: 1.48M
May 17, 2022 1:06p
P/E Ratio
16.95
Dividend Yield
3.30%
Market Cap
€65.84 billion
Rev. per Employee
N/A
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
14,180.24
+215.86 +1.55%
Volume: 28,725
May 17, 2022 1:08p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,436.07
+88.30 +1.39%
Volume: 29,969
May 17, 2022 1:08p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,526.65
+61.85 +0.83%
Volume: 235,664
May 17, 2022 12:08p
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/zigman2/quotes/203655455/delayed
XE : Germany: Xetra
66.74
+1.64 +2.52%
Volume: 106,439
May 17, 2022 1:08p
P/E Ratio
31.07
Dividend Yield
1.08%
Market Cap
€9.82 billion
Rev. per Employee
€444,577
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/zigman2/quotes/206448829/delayed
XE : Germany: Xetra
184.10
+4.04 +2.24%
Volume: 207,334
May 17, 2022 1:08p
P/E Ratio
17.50
Dividend Yield
1.79%
Market Cap
€34.58 billion
Rev. per Employee
€346,379
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