Ryanair Shares Rise Following UBS Upgrade

Shares of Ryanair increased after UBS upgraded its rating to "buy" from "neutral."

At 7:56 am (12:56 GMT), Ryanair was trading 1.2% higher at €19.175.

UBS cited an improved outlook for both revenue and cost structures through 2026 as the key factors for the upgrade.

Analysts foresee a favorable pricing environment and tighter industry supply dynamics, benefiting Ryanair's financial performance.

Projected growth in passenger numbers and strategic capacity expansion are expected to sustain positive yield trends.

Despite conservative market expectations for returns, analysts believe the airline is well-positioned to outperform.

UBS raised the 12-month price target for the stock to €23.15 from €17.25.

Ryanair is currently trading at less than five times its estimated 2026 enterprise value to EBITDA ratio, compared to a historical pre-pandemic average of eight times.

UBS highlighted that the airline’s lean cost structure and demand recovery could drive significant earnings growth as pricing normalizes across the sector.