RYAAY - Ryanair: Wait For Things To Get Ugly
2024-03-13 00:51:36 ET
Summary
- Increased passenger volume to drive revenue growth through the next decade.
- Margins are expected to expand in the long term due to the scale of economic benefits from the expanding fleet.
- Ryanair has a solid balance sheet to resist economic downturns.
- A hold for now based on valuation, wait for a better entry.
Investment Thesis
I believe Ryanair ( RYAAY ) is a hold. I think revenue growth supported by an expectation that annual traffic will increase from 169 million passengers in 2023 to 300 million passengers in 2034 will be a major factor in Ryanair’s expansion. The airline will also be expanding its fleet with 300 additional Boeing 737 MAX 10 aircraft, which should expand operating margins due to better unit economics and economies of scale....
Ryanair: Wait For Things To Get Ugly