Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

easyJet shares: Will the upturn continue?

UK no-frills airline easyJet shares rose after its CEO told Ryanair’s boss to focus on running his own airline.

  • easyJet (LON: EZJ) share price reaches 709.4p per share
  • Its CEO has told Ryanair’s boss to focus on his own airline
  • With the rights issue, easyJet may potentially invest in greener aircraft, JPMorgan says
  • Keen to take advantage of easyJet’s rising share price? Open an account with us to take a long or short position on the stock today.

easyJet stock price flies high

Shares of Luton-based easyJet advanced 4.2% day-on-day to end Monday at 709.4 pence.

The counter has soared 9.9% over the past five days. And since it went ex-rights on 13 September 2021, the British low-cost airline has climbed 20.2%.

Last week, the stock received a boost after the US announced it would relax travel restrictions on the UK and EU countries.

As of Monday, 14 analysts recommended ‘buy’, eight suggested ‘hold’, while one gave a ‘sell’ call. Their average target price was 765.52p per share, Bloomberg data showed.

easyJet boss hits back at Ryanair CEO’s comments

Hungarian low-cost airline Wizz Air has declined to comment on whether it had been behind the recent unsuccessful takeover bid for UK rival easyJet, Reuters reported.

Meanwhile, the chief executive officer (CEO) of easyJet, Johan Lundgren, has told the head of Irish low-cost carrier Ryanair, Michael O’Leary, to focus on running his own airline.

That was in response to O’Leary questioning the British company’s independence in his comments to the media.

O’Leary had told The Financial Times in mid-September that easyJet and Wizz would need to merge or be taken over, amid the aviation industry’s consolidation due to the pandemic’s impact.

In a Reuters interview, Lundgren described those remarks as ‘complete nonsense’. ‘I would urge anyone who runs an airline to focus on their own business rather than speculate about others, (where) they have no idea about what’s going on,’ he added.

easyJet is not opposed, in principle, to consolidation in the form of external transactions, but it must deliver value for shareholders and provide ‘a reason to believe in a successful outcome’, Lundgren said.

Is easyJet ‘heading in the right direction’?

Regarding easyJet’s £1.2 billion rights issue, Deutsche Bank analysts wrote that ‘the timing and amount of the equity raise make sense’. They reiterated a ‘buy’ rating while eyeing a 750p target on EZJ shares.

The company is expected to receive the net proceeds on 01 October 2021.

‘With easyJet’s balance sheet set to be in a much better place as it emerges from the Covid-19 crisis thanks to the proceeds from the rights issue, and with management focusing on cost to the potential benefit of profits per passenger, we see the group as heading in the right direction,’ Deutsche Bank said.

Meanwhile, JPMorgan was ‘neutral’ on the EZJ stock, and reduced its target to 595p partly given the significant dilution to earnings per share from the rights issue.

However, the rights issue ‘meaningfully improves EZJ’s gearing’ and also allows the company to invest in new airport slots and potentially in new, more fuel-efficient aircraft, the research team noted.

‘Assuming EZJ does not receive another takeover bid, we consider the shares fairly valued,’ JPMorgan said.

Feeling bullish about easyJet shares?

Go short and long with spread bets, CFDs and share dealing on IAG, easyJet and 16,000+ shares with the UK’s No.1 platform.* Learn more about trading shares with us, or open an account to get started today.

* Best trading platform as awarded at the ADVFN International Financial Awards and Professional Trader Awards 2019

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. See full non-independent research disclaimer and quarterly summary.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" edit-mode="false"> liveprices.javascriptrequired


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.