EasyJet PLC (LSE:EZJ) has received a doubled upgrade to 'buy' from analysts at Deutsche Bank, with a better outlook for the UK economy the key reason for the change from its previous ‘sell’ recommendation.
Deutsche, which raised its target price on the budget carrier to 580p from 410p, added the backdrop has improved ‘dramatically’ according to its economic team.
“One of the key pillars of our cautious stance on easyJet, when we wrote our 2023 outlook report back in mid-December, was concern about the health of the UK consumer,” the bank said.
Deutsche adds that of all the airlines it covers easyJet has the greatest exposure to the UK, which pre-covid generated around 40% of profit.
Shares rose 5% to 492p.