EasyJet share price has been on a strong rally for the past week, shrugging off bearish estimates by analysts. In the past week, the EZJ stock has jumped by nearly 19% and has gained more than 3% in the past month. The company’s total market capitalization is currently at £2.814 billion.
EZJ Fundamental Outlook
EasyJet share price has been among the top market movers in the European stocks market since the start of the new year. The stock has been staging a slow substantial comeback this year.
Investors have been questioning the validity of the “bounce back” on EasyJet share price as described by the CEO, Johan Lundgren. In the year ending 30th September 2022, the airline operator received 46.3 million passengers, which was 15% below the same period in 2019. Furthermore, passenger levels by EasyJet’s competitors, Ryanair and Wizz Air, surpassed EZJ’s levels by 11% and 20%, respectively, in the same period.
Earlier last week on Wednesday, JP Morgan’s David Perry downgraded the EZJ stock, handing it a “sell” rating. Perry downgraded the stock to 320p, suggesting a downside of more than 10%. In his statement, Perry warned that the company could struggle for the first few months of the year on the back of slow growth in the European travel sector.
Last month, an analyst from Deutsche Bank, Andy Chu, also downgraded the stock to 330p, pointing to the company’s elevated costs.
Despite the downgrades, highly rated analysts from UBS and Bernstein are bullish on EasyJet’s medium-term prospects. The analysts estimate an increase in its share price to about 600p.
EasyJet Share Price Outlook
On the daily chart, we can see that the EasyJet share price has been on a steady bullish trajectory for the past week. It has moved slightly above the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) has moved below the neutral point of 50.
Despite so many uncertainties in the global economy, the EZJ share price is likely to continue rising. If this happens, the bulls could retest the key resistance level at 450p. However, a move past the crucial support at 312p will invalidate the bullish stance.