Imperial Capital Raises Price Target on Ryanair (RYAAY) to $45

January 29, 2013 9:37 AM EST Send to a Friend
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Price: $63.85 --0%

Rating Summary:
    8 Buy, 3 Hold, 1 Sell

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    Up: 10 | Down: 10 | New: 10
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Imperial Capital today reiterated an Outperform rating on Ryanair (NASDAQ: RYAAY) and raised its price target to $45.00 (from $40.00). Instead of making large aircraft purchases next year, analyst Bob McAdoo thinks the company will focus on optimizing routes.

"Without the pressure of finding routes for incoming aircraft deliveries, the scheduling department should be better able to focus on pruning Ryanair’s weaker routes. We believe this alone will support further growth in revenue per passenger and margins," said McAdoo.

McAdoo thinks Ryanair will be successful at pruning routes and at making better use of its fleet of planes after grounding 80 planes this winter.

"Ryanair expects more than one year of this 'winter growth and summer churn' until it has eliminated all its winter aircraft grounding. We expect this alone to contribute to 1% growth in capacity," added McAdoo.

For an analyst ratings summary and ratings history on Ryanair (NASDAQ: RYAAY) click here. For more ratings news on Ryanair click here.

Shares of Ryanair closed at $39.68 yesterday.

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