Jet2 PLC (GB:JET2) is a prominent leisure travel group, offering affordable flights and holiday packages. Analysts pick the company’s stock as a recommended choice among the travel players in the UK market. They believe the shares are projected to experience an upward trend as the demand for holidays persists despite the economic downturn.
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Numbers Back on Track
The company’s emphasis on leisure travel and its package holiday business has enabled the group to overcome challenges in its airline business. The company’s earnings are currently rebounding rapidly, and it seems that the company is generating higher profits in 2023 compared to the pre-pandemic year.
For the full year 2023, Jet2 expects to surpass its full-year financial projections, expecting a profit ranging from £370-385 million, driven by strong winter bookings. The company also stated that the forward bookings are promising, with around 77% of the total attributed to package holiday passengers.
The company will announce its full-year earnings for 2023 on July 6.
Buy Ratings
Two months ago, analysts from Barclays, Canaccord Genuity, and Stifel Nicolaus reiterated their Buy ratings on the stock.
Canaccord Genuity expects the highest upside of 46% in the share price. The broker said, “With a £30 million first-half beat, we lift full-year 2023 profit before tax to £321 million.”
Johannes Braun from Stifel Nicolaus has a price target of 1,600p with a Buy rating, predicting a growth of 27%.
While James Rowland Clark from Barclays has a modest growth prediction of 18% at a price target of 1,500p. He also confirmed his Buy rating two months ago.
Is Jet2 a Good Share to Buy?
According to TipRanks, JET2 stock has a Strong Buy rating based on three Buy recommendations.
The average target price of 1,717.5p is 36% higher than the current price level.
Concluding Remarks
Post-pandemic, analysts remain bullish on travel and leisure industry stocks in the UK. Based on Jet2’s track record of growth and its recovery this year, the stock seems like a viable investment option.
