Liberum raises target price on EasyJet

Liberum said a "positive" first-half trading update saw management raise guidance on strong demand and self-help measures.

"Macro risks to demand have been shrugged off, supporting our thesis that the lag in industry capacity restoration has left plenty of headroom for further recovery," said Liberum.

The investment bank increased its September 2023 earnings per share forecasts for EasyJet by 46%, highlighting the "extreme sensitivity" of earnings estimates to small improvements in revenues or costs.

In addition to raising its target price on EasyJet, Liberum also reiterated its 'buy' recommendation on the stock.

Reporting by Iain Gilbert at Sharecast.com