Morgan Stanley analyst Conor Dwyer has maintained their neutral stance on RYA stock, giving a Hold rating on March 4.
Conor Dwyer has given his Hold rating due to a combination of factors influencing Ryanair Holdings. The recent change in ownership rules, allowing non-EU nationals to purchase ordinary shares, has opened up opportunities for more efficient shareholder returns. However, the company continues to maintain voting restrictions on these investors and may reintroduce purchase restrictions if EU ownership falls below a certain threshold.
While this change could enhance the buyback program, significant buybacks would require Ryanair to be more open to holding gross debt. Despite the potential for substantial shareholder returns, the company’s current financial strategy suggests a cautious approach. Dwyer estimates a net cash position that indicates financial stability, but the willingness to leverage more debt remains a critical factor for future buybacks. These considerations contribute to the Hold rating, reflecting a balanced view of potential risks and opportunities.
In another report released on March 4, Jefferies also maintained a Hold rating on the stock with a €18.20 price target.