Ryanair initiated with a Hold at Jefferies

Jefferies initiated coverage of Ryanair (RYAAY) with a Hold rating and EUR 17.10 price target as part of a broader research note launching coverage of European Airlines. The sector does face a challenging period as carbon headwinds enter the P&L and yield expansion is uncertain, but the market fails to recognize its self-help measures and efficiency gains, the analyst tells investors in a research note. Ryanair’s long term investment case is attractive, with its volume-led business model driving market share gains and cost leadership in the sector, which creates a highly cash generative business model, though questions around the medium term remain, the firm added.