UPDATE: Goldman Sachs Upgrades Ryanair to Buy on Pricing, Returns and Cash Generation

Goldman Sachs raised its rating on Ryanair

from Neutral to Buy. Goldman Sachs commented, "We expect Ryanair to benefit from continued pricing strength in 2H13/FY14 (we forecast revenue per pax growth of 5.4%/3.2%) owing to capacity discipline in the European short-haul market. This, together with limited capex commitments, should drive improving asset turn and returns on capital as well as significant cash generation, placing Ryanair at an increasing discount to its historical valuation. We factor into our valuation a return on capital impact from a new plane order, which we expect to be limited." Ryanair closed at $4.82 on Monday.