Broker tips: Next, Marshalls, easyJet

"Although we still very much like the long-term story at Next, we feel that the share price is 'up with events' after a strong run," it said.

Barclays noted that the shares are up 26% since the end of October last year, versus the FTSE 100 up 5%.

Berenberg upgraded Marshalls to ‘buy’ from ‘hold’ and lifted the price target to 420p from 320p.

The bank noted that Marshalls has had a pretty "torrid" time since it announced the largest acquisition in its history, Marley, in April 2022.

"End-markets turned against the company and much of its product range proved to be far more discretionary than many investors and analysts had expected. As volumes fell, negative operational gearing kicked in, and the earnings sensitivity was material," it said.

"However, Marshalls also presents arguably one of the more interesting rebuild stories in the sector, particularly in light of the new CEO, Matt Pullen, joining at the start of 2024."

Berenberg said that as with most cyclical stocks, it thinks the Marshalls share price is likely to move quickly at the start of a new cycle before earnings momentum really kicks in.

"So what does the size and shape of the next cycle look like? We run a number of scenarios and conclude that there is interesting upside in the stock on a multi-year view, particularly given the magnitude of weakness over 2022-23."

JPMorgan Cazenove upgraded easyJet to ‘overweight’ from ‘neutral’ as it took a look at European airlines.

Looking at easyJet, Ryanair and Wizz, the bank said its key takeaway from the low-cost carrier results across all three names was encouraging early comments on demand/pricing into 2024, hence the easyJet upgrade.

JPM noted that in its outlook it took a cautious view due to capacity growth meeting elevated yields in an uncertain backdrop, but with a preference for the LCCs where it saw better opportunities to grow profitability amid more resilient pricing.

"The results period reinforces that view so far; with booked summer yields up healthily yoy. Short-haul is not immune from capacity growth, with schedules +10% for adjusted intra-European capacity in H1 24E; however constraints around the GTF issue are helping to tighten supply."

The bank said it was upgrading easyJet with good momentum now into summer and further upgrade potential on fares.

"Our Sep-24/25/26E PBT estimates for easyJet increase by 26%/20%/16% respectively due to higher revenues. We now sit circa 8% above Sep24E Bloomberg consensus for PBT at £639m," it said.

JPM maintained its ‘overweight’ rating on Ryanair, which it said remains the best "structural" story in a commoditised industry, and with a pathway to net income growth and large free cash generation in March 2025E.

As far as Wizz Air is concerned, it kept the shares at ‘neutral’, citing continued uncertainty and questions over execution.

"Uncertainty reigns high and execution will be key over the coming quarters," it said. "We remain neutral given the specific issues impacting Wizz, and see much cleaner stories to play elsewhere."

JPM lifted its price target on easyJet to 690p from 520p.