Ryanair Holdings PLC

Ryanair Holdings PLC (LON: RYA) is an LSE listed Europe's largest airline group. Moreover, it is known as the parent company of Buzz, Lauda, Malta Air & Ryanair.

Investment Rationale – AVOID at EURO 15.72

• Increase in Operational Cost: The Company’s operational cost went up by around 63% during H1 FY22 when compared with H1 FY21.
• Weak Profitability Guidance: RYA had projected FY22 net loss ranging from negative €100 million to a negative €200 million.
• Increasing Covid-19 cases: The rising Covid-19 cases in Europe possessed a significant risk for the global aviation industry.
• Delisting from LSE: RYA had intended to get delisted from LSE effective from 20 December 2021.
• Unfavourable Technical Indicators: From a technical standpoint, the MACD line remained lower than the signal line, indicating a correction in the stock price.

One Year Share Price Chart

(Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak profitability guidance and delisting from LSE, we have given an “AVOID” recommendation on Ryanair Holdings PLC at the closing market price of EURO 15.72 (as of 24 November 2021), while we will suggest reinvesting after identifying fresh growth catalysts.

*The reference data in this report has been partly sourced from REFINITIV.

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