This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
easyJet (Q3 statement 18 July)
easyJet goes into its third quarter (Q3) statement having reported excellent numbers for June, seeing 2.3% growth in passenger numbers and a load factor of over 95%. Consumer spending fears have not been reflected in its performance, and it continues to maintain a strong showing against rival Ryanair. At 12.5 times forward earnings, the shares trade around their longer-term average, although it should be noted that the dividend, at 2.5%, is well below its two-year average of 4.1%.
June saw easyJet shares record a new all-time high, breaching £18.00 for the first time. Since then, a pullback towards £15.60 provided a buying opportunity, with the shares bouncing back above £16. The next areas to watch are £17.69 and then £18.09. A close below £15.66 would open the way to rising trendline support around £15.10, and below this £14.42.
.jpg)
