Deutsche Bank upgrades EasyJet on 'dramatic' improvement in UK economic outlook

Analysts at Deutsche Bank upgraded their recommendation for shares of Easyjet on the back of what they said had been a "dramatic" improvement in the outlook for the UK economy in 2023.

"The UK economic outlook has ‘improved dramatically’ according to our colleague Sanjay Raja in his note ‘What a difference three months can make ’ – we see this as positive for easyJet, the airline we cover which we think has greatest exposure to the UK (~40% of pre-COVID profit)," analyst Jaime Rowbotham said in a research note sent to clients.

One of the key pillars of his caution towards EasyJet in mid-December had been the economic outlook, he added.

The analyst upgraded Easyjet from 'sell' to 'buy' and lifted his target price from 410.0p to 580.0p.