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.
easyJet (first-half earnings 15 May)
It has been a tough couple of years for easyJet, but it is beginning to look like the firm has turned a corner. Recent updates have been better, with improvements in both profits and dividends forecasted. Demand for cheap airline tickets remains robust, as does its expansion into new routes and hubs. Although Alitalia might be a big mouthful to swallow, it would give easyJet yet more routes as it continues its life-or-death struggle with rival Ryanair. At around 15 times forward earnings the shares are not too demandingly valued, with further room for growth. The firm is expected to report a 59% rise in earnings, although it is still expected to report a loss per share of 13p, while revenue is expected to rise 15.5% to £2.1 billion.
The shares have broken out from the £17.00 high that has held so far this year. The next resistance levels are £17.70, £18.46 and £19.28. Dips in the price should continue to find buyers, with £15.66 as near-term support and the 200-day simple moving average (SMA), currently £14.43, after this.