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(Sharecast News) - RBC Capital Markets upgraded easyJet on Tuesday to 'outperform' from 'sector perform' and lifted the price target to 650p from 570p saying it's expecting FY26 profit progress to surprise to the upside.
"We see easyJet as well positioned in an environment of strong UK travel demand, amplified fuel and FX tailwinds, and firm forecasts from FY26E," the bank said.
RBC said it also expects a stronger contribution from easyJet's own medium-term profit measures in FY26E (reducing winter losses, upgauging to lower unit-cost A320/1neos aircraft, Holidays growth).
It said that both RBC Elements website activity and Barclaycard spend trends data indicate strong UK travel demand.
RBC said that neither it nor consensus credit easyJet for delivery of its medium term 1bn headline pre-tax profit target, so only above-expected progress is required to prompt upgrades.
The bank said it now forecasts headline pre-tax profit of 791m, around 3% ahead of consensus of 762m in FY26E.
At 1010 BST, the shares were up 0.5% at 582p.
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