Goldman Sachs bets on low-cost airlines
The broker Goldman Sachs has indicated its predilection for low cost airlines (LCC for its acronym in English) which is reflected in the increase it has carried out in the recommendation of Easyjet and the reiteration of purchase of Ryanair versus the drop to neutral of IAG And the descent to sell from Lufthansa.
However, according to . analysts, the general recommendation of the entities that follow the value of IAG is to buy, with a price of 2.48 euros which translates into a potential of 5.89%. In fact, of the thirteen companies that cover the Spanish airline, eight advise buying. Of these, four are positioned to overbought. Another four are more cautious and are placed on hold while only one analyst opts for overselling.
IAG reaches an opening price of 2.35 euros per share, as well as its maximum price. Its minimum amount points to 2.33 euros per title. In addition, the rise of the Spanish airline stands out, which has increased by 30.15% in the year.
With regard to the technical indicators of Investment Strategies, which measure as main variables the trend, the total fast and slow moment, the volume and the volatility of the share, they rate the company with a score of 7.5 points out of 10, placing it in a bull phase of the cycle.
There is a mixed dynamics in the long-term uptrend and long-term downtrend while the fast and slow total moment indicates positive results. The volume of the securities follows the same path with an increasing evolution both in the long and medium term, which makes it the most favorable point of the analysis. Finally, the range of amplitude presents a mixed diagnosis that is increasing in the long term and decreasing in the medium term.
In the case of Lufthansa, . analysts share the opinion of Goldman Sachs and give it a recommendation to sell with a price of 8.31 euros per share and with a decrease in potential of 20.10%. Of the 26 specialists who follow the company, two choose to buy, four choose to keep and twenty choose to sell. which indicates a clear predilection for the sale.
The US broker justifies this decrease because it foresees a forecast of short-haul capacity at the end of 2022 8% lower than in 2019. It also adds that, with the fleets of wide-body aircraft prepared to reduce even more, it predicts a deflation single-digit fares for large airlines, due to a structural reduction in corporate travel.
In the case of Easyjet, the experts of the British agency recommend buying with a potential of 5.92%. Of the 22 entities that cover the value, 12 are positioned to buy, 8 prefer to hold and only 2 choose to sell. In addition, analysts explain that they predict smaller European fleets after the pandemic, but higher profitability in these low-cost airlines.
Finally, when it comes to Ryanair, the . analysis advises to buy with a price of 17.81 euros, which gives it a potential of 8.47%. If we disaggregate the entities that monitor the value, we see that of the 21 that are in total, 14 are positioned to buy, 5 to hold and only 2 to sell.
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