RBC Capital Markets initiates coverage on Jet2 at 'outperform'

12th Apr 2024 08:05

(Sharecast News) - Analysts at RBC Capital Markets initiated coverage on tour operator Jet2 at 'outperform' on Friday, citing shareholder upside from a customer-first proposition.

RBC said its 1,950.0p price target implied a 30% upside to the UK's leading tour operator and major airline, an integrated model it added has produced "a sector-leading" return on invested capital and customer experience.

"Despite strong credentials for growth and value creation, Jet2 trades on the cheapest EV valuation multiples in our transport coverage," said the Canadian bank.

"We expect Jet2 to benefit from an encouraging outlook for UK travel demand, and see upside to consensus expectations."

Reporting by Iain Gilbert at Sharecast.com