Jet2 Fair Value Raised to £16.63 as Analysts Split on Growth and Margins

Simply Wall St··GB·Read original
2▲1 ▼0Impact / 5
Summary · why it matters

Analysts have edged their fair value estimate for Jet2 higher, to £16.63 from £15.90, as they reassess the airline's growth and margin outlook. Price targets now cluster between about £12.56 and £20.00, with Kepler Cheuvreux initiating coverage at Buy with a £20.00 target and RBC Capital reaffirming Outperform with a £19.00 target, while Deutsche Bank kept a Hold rating and a £12.56 target. In the updated model, revenue growth shifted from 8.70% to 8.66%, net profit margin assumptions moved from 4.10% to 4.27%, the future P/E adjusted from 9.33x to 9.37x, and the discount rate moved from 10.35% to 10.18%. The spread between the highest and lowest targets points to genuine disagreement over Jet2's risk-reward balance, with execution risks weighed against expansion into new UK bases, digital tools and fleet renewal.

Impact on assets 3

Financials▲ · 2 stocks
Industrials▲ · 1 stocks
Jet2 PLC
JET2
▲ PositiveCapitalrelevance

Analysts raised Jet2's fair value estimate to £16.63 from £15.90 and issued Buy/Outperform ratings with higher price targets.

Off-coverage companies 1

Kepler CheuvreuxPrivate± Mixed
Capitalrelevance

Kepler Cheuvreux initiated coverage on Jet2 at Buy with a £20.00 target, a passing analyst mention.