EU Airlines May Be Oversold; Lufthansa Cut, Prefer IAG: Barclays
2014-07-02 06:40:30.840 GMT
By Brian Lysaght
July 2 (Bloomberg) -- EU airlines face some headwinds,
don’t deserve “tumbling valuations” of last two months, see
compelling entry points, says Barclays in note.
* Lufthansa cut to equal weight from overweight, has multiple
structural issues
* IAG (reiterated overweight) has best restructuring story,
strong management and global positioning
* Ryanair (reiterated overweight) has best EPS momentum in
next six months
* EasyJet (reiterated overweight) oversold on capacity
and fuel concerns; has history of conservative guidance, has
cost headroom to absorb any price weakness
* Air France reiterated underweight, has LT challenges:
Barclays
* See yday: Lufthansa, Air France Lag in June, Lead EU Airline
Shares Lower
Link to Company News:LHA GR <Equity> CN <GO>
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First Word newswire: NH BFW<GO>
To contact the editor responsible for this story:
Brian Lysaght at +44-20-7330-7908 or
blysaght@bloomberg.net
2014-07-02 06:40:30.840 GMT
By Brian Lysaght
July 2 (Bloomberg) -- EU airlines face some headwinds,
don’t deserve “tumbling valuations” of last two months, see
compelling entry points, says Barclays in note.
* Lufthansa cut to equal weight from overweight, has multiple
structural issues
* IAG (reiterated overweight) has best restructuring story,
strong management and global positioning
* Ryanair (reiterated overweight) has best EPS momentum in
next six months
* EasyJet (reiterated overweight) oversold on capacity
and fuel concerns; has history of conservative guidance, has
cost headroom to absorb any price weakness
* Air France reiterated underweight, has LT challenges:
Barclays
* See yday: Lufthansa, Air France Lag in June, Lead EU Airline
Shares Lower
Link to Company News:LHA GR <Equity> CN <GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the editor responsible for this story:
Brian Lysaght at +44-20-7330-7908 or
blysaght@bloomberg.net