Bernstein Affirms ‘Outperform’ Rating on Ryanair Holdings (RYAAY), Hikes Price Target

Ryanair Holdings plc (NASDAQ:RYAAY) is one of the top industrial stocks to buy amid easing tariff uncertainties. On July 22, Bernstein SocGen Group reiterated an ‘Outperform’ rating on the stock and raised the price target to €28 from €27. The positive stance follows the stock’s remarkable strength year to date.

Bernstein Affirms ‘Outperform’ Rating on Ryanair Holdings (RYAAY), Hikes Price Target

The Irish airline continues to deliver solid results by benefiting from fare growth. Fares have increased compared to both 2023 and 2024, attributed to high demand for revenge travel. The high travel demand has resulted in a 9.24% increase in revenue and a 28.86% improvement in the gross profit margin. In June, the airline carried 19.9 million passengers, marking 3% year-over-year increase, affirming the strong demand.

In addition, Ryanair has been effective in cost control, with unit costs excluding fuel increasing by just 1.6% amid robust revenue growth. While Bernstein expects non-fuel costs to increase by between 3% and 4% for the year, the lower fuel costs are expected to help offset this increase. Therefore, total cost growth is likely to be below management guidance.

Ryanair Holdings plc (NASDAQ:RYAAY) is an Irish airline holding company that provides low-fare, short-haul passenger airline services to destinations with a network connecting over 240 destinations in more than 40 countries. In addition to its core flight operations, the company also offers various ancillary services, including car hire, travel insurance, and accommodation, through its website and mobile app.

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Disclosure: None. This article is originally published at Insider Monkey.