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(Sharecast News) - RBC Capital Markets lifted its price target on easyJet to 715p from 600p on Monday, aligning it with Apollo's offer price and highlighting what it sees as further upside for the shares despite trimming nearterm estimates.
The Canadian broker said it had cut topline and fuelcost assumptions following easyJet's 30 June update, noting softer fourthquarter load factors and broadly flat ticket yields. Bookedtodate load factors for Q4 were running about 2% lower yearonyear.
Even so, RBC raised its valuation to match Apollo's £7.15pershare proposal, implying a 1.5-1.6x FY26 price-to-net asset value multiple, noting that its previous 600p target was based on a tenyear median of 1.3x P/NAV and set after Castlelake's approach but before Apollo entered the fray.
RBC said easyJet shares currently trade 6% to 7% below the offer price, adding that the discount likely reflects the time value of money rather than doubts over whether the takeover will proceed.
RBC reiterated its 'sector perform' rating on the stock.
Reporting by Iain Gilbert at Sharecast.com
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