RBC sees upside risk to consensus forecasts at easyJet

Results for the year ended 30 September were in line with estimates but RBC is now estimating a 14% increase in pre-tax profit in the current financial year to £696m, well ahead of the current consensus forecast of £684m.

Pre-tax profit for the year to September 2026 is also tipped to rise to £767m, above the market forecast of £753m, helped by falling fuel unit costs, though the broker highlighted that its outer-year estimates still sit below consensus.

RBC raised its target price from 550p to 570p, but kept a 'sector perform' rating on the stock, saying it sees greater upside elsewhere in the sector.

The broker said it sees "attractions in the easyJet investment case" – such as strong expected growth in the holidays division – but also reasons for "remaining on the sidelines".

"We think the potential expansion of Gatwick airport could be a risk for easyJet since the company has highlighted the superior results delivered at capacity/slot-constrained airports. We see attractions in some peers trading at more attractive valuations (on EV/EBIT and PE multiples) and/ or generating higher margins/ returns."

The stock was up 3.2% at 555.32p by 1424 GMT, having now risen around 8% since the start of the week.