easyJet downgraded, Southwest and Allegiant upgraded
easyJet’s shares were down 2.0% yesterday, after rising 35% over the past three months, as RBS cut its rating from ‘buy’ to ‘hold’.
RBS stated that while it "continues to like easyJet’s strategic long-term position, we think it now needs to demonstrate delivery of good cost performance to provide further impetus”.
RBS also warned that over the European Winter, the revenue environment will toughen significantly, and the carrier will need to improve its cost performance to improve margins" It added, the carrier’s strategy of using major airports will result in “limited flexibility to manage airport costs”.
Southwest and Allegiant share price target raised by Morgan Stanley
Selected LCCs daily share price movements (% change): 12-Oct-09