Easyjet expected to soar ahead following acquisition of Air Berlin

FRANCE-AERONAUTIC-FEATURE
Easyjet is expected to announce big gains when it reports on Tuesday (Source: Getty)

Easyjet is set to make immediate gains from its recent acquisition of Air Berlin as new CEO Johan Lundgren prepares to give his first trading update at the company on Tuesday.

Morgan Stanley upgraded its rating on Easyjet to 'overweight' from 'equal-weight' raising its target price to 1,725p from 1,490.

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“As the best hedged name in the sector for 2018, combined with leverage benefits from the Air Berlin slots in Germany, we believe pricing momentum can gradually improve and hence move from ‘equal-weight’ to ‘overweight’,” Morgan Stanley said.

But analysts also warned that forecasts may be unpredictable, as volatile fuel prices, and key exchange rates of the dollar, euro and swiss franc were likely to cause variance in share price.

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