UPDATE: Bank of America Downgrades Ryanair Following Muted Q1 Results

In a report published Monday, Bank of America analyst Mark Manduca downgraded Ryanair RYAAY from Buy to Underperform, but reiterated the $50.00 price target.

In the report, Bank of America noted, “We downgrade Ryanair to Underperform with an unchanged price objective €6.50 (c.10% potential downside) [US$50.00]. Ryanair this morning reported a limp set of Q1 results (March YE), punctuated by weak yields (timing of Easter; -4% YoY vs. consensus - 3%), rising fuel costs (+6% YoY) alongside impacts from strikes and sterling shifts. Net income in Q1 of €78mn was in line with consensus, due to lower than expected maintenance expenses, in our view. While management outlook remains ‘unchanged' (FY net income guidance of “€570mn to €600mn” BofAMLe €630mn; consensus c.€643mn), the overall near-term yield commentary is not showing signs of a recovery in momentum.”

Ryanair closed on Friday at $53.63.