easyJet jumps on upgrade, SpiceJet also stronger on sudden rise in trading activity
easyJet's shares gained the most in four and a half months in intraday trading yesterday (+8.8%), ending the day up 3.9%, following an upgrade by Morgan Stanley.
Morgan Stanley raised its recommendation on easyJet stock to 'overweight' and its stock price estimate from GBP3.40 to GBP4.60 per share, citing a prediction of improved yields in 2011, reduced costs and "updates to our forecasts to reflect renewed ability for growth."
easyJet is now one of Morgan Stanley's "preferred plays" among European airlines, "for which we would view any Winter weakness as a buying opportunity".
Morgan Stanley, meanwhile, retained its price estimate for Ryanair at EUR4.70. Ryanair shares ended the day up 0.9%.
Selected LCCs daily share price movements (% change): 17-Sep-09
SpiceJet shares jump amid sudden rise in trading activity
SpiceJet shares also gained yesterday, soaring 7.2%, for a gain of 23.8% in the past week and 54.5% in the past month. The carrier share price at close of markets yesterday reached the highest level since 11-Jul-2008 after a sudden rise in trading activity yesterday.