Just a heads-up for any traders out there. Easyjet seems to be bouncing back after its 20% fall during the week.

MM's seem to be walking the price up.

Right now we have EZJ Bid: 608.5p Offer: 609p Change: 11, was up 13 a few minutes back.

21 Nov easyJet PLC EZJ Deutsche Bank Buy 0.00 692.00 745.00 745.00 Reiterates

745p SP target.

EasyJet defies recession and suspect accounting standards
By Richard Beddard | Wed, 21/11/2012 - 09:37

EasyJet has impressed me. Not just its full-year performance reported yesterday, but the way the airline reported it.

Normally big capital intensive companies have long annual reports that suck time and energy in the reading and often leave the reader clueless. EasyJet explains last year's good performance, a combination of skill and luck, with clarity and, anticipating standards that will require companies to capitalise operating leases, bringing leased aircraft on to the balance sheet and treating them as debt, it has gone ahead and capitalised them. It's an important step because capitalising them gives investors a more accurate impression of the capital required by the company and profitability, which is the return on capital.

The bad news is, EasyJet doesn't think this accounting practice will be introduced as a standard at least until 2016. Until then, for most companies, investors will have to do it for themselves.

This EasyJet spreadsheet uses only the most recent results and capitalises the operating leases at seven times lease payments, the multiplier used by EasyJet:



Although net debt rose very slightly, it's a reflection of how well EasyJet did last year in comparison to the earlier one considering the company paid no dividend in 2011 but paid £48m in dividends in 2012 plus a special dividend of £150m. The other key measures, adjusted after-tax operating profit and operating cash flow indicate strong growth.

One of the reasons the airline fared so well despite recession in Europe, where it flies to, is reduced cancellations. Cancellations are not entirely in the control of airlines; bad weather and terrorist threats can be more prevalent one year than another and in 2012 there were relatively few cancellation events, but the company has also been improving the way it manages them by investing in its Operational Control Centre. Like Share Sleuth portfolio member Dart, which operates a packaged holiday company, and Air Partner, a charter company, EasyJet reports that demand from holiday makers is holding up. It's also gaining commercial custom from private and public sector customers travelling to the popular destinations it flies to cheaply.

EasyJet differentiates itself from some of the low cost competition by flying the major routes, while still keeping costs and undercutting "legacy" airlines, often former flag-carriers, it competes with on those routes.

Judging EasyJet on its latest results alone is dangerous though, because airlines are cyclical and profitability was much lower between 2008 and 2010. And that's a shame because using averages encompassing that period would likely produce a lower estimated valuation than the latest results, which already indicate EasyJet must grow .

http://www.iii.co.uk/news-opinion/richard-beddard/easyjet-defies-recession-and-suspect-accounting-standards

easyJet: UBS raises target price from 680p to 780p, buy recommendation kept.

Broker notes in detail....

Consumer, Cyclical
easyJet (EZJ.L) Jarrod Castle, CFA........ +44-20-756 88883
Analyst
jarrod.castle@ubs.com
Price (19 Nov 2012)............692p/US$11.01
12-month rating...............Buy (Unchanged)
12m price target.....Prior:
680p/US$10.81 => 780p/US$12.40
Market cap...................£2.73bn/US$4.35bn
Full-Year EPS
2013E............................... 65.58p => 69.34p
2014E............................... 68.72p => 74.94p
O.nce again.. Easy does it.. Long may it last Full year numbers a beat with an increased dividend payout
2012 sales were £3,854m (Cons £3,878m) with yield growth of 5.9%. PBT was £317m (Cons
£314m) with EPS of 61.7p vs Cons 59.3p. Although 2012 numbers are a beat equally important
was the company increasing its 2012 ROCE (ex leases) from 12.7% to 14.5%, and dividend
p.ayout ratio from a fifth to a third. Clear guidance provided by the company, although we are more optimistic
Company guidance for 2013 is capacity growth of 3.5% (UBS 3.5% with traffic at 4%), 1H13e
yields expected to be low to mid-single digits (UBS full year 3.5%) and per seat costs (ex fuel/
currency) to be up 3-4% (UBS 3% - with EZJ in 2012 achieving a 1% fall in cost per seat ex
f.uel) despite EZJ guiding for a £35m benefit from easyJet Lean (although offset by airport fees). Greatest near term risk to forecasts relates to winter disruption
We think the greatest near term risk to forecasts is a winter which is not benign. We
acknowledge we are unable to forecast the weather but should industry capacity discipline hold,
easyJet deliver on reserved seating and business travel, and the cost savings come through we
see upside risk to consensus forecasts. We increase our 2013e and 2014e EPS from 66p and
6.9p to 69p and 75p respectively. Valuation – PT increased from 680p to 780p with Buy rating
We slightly increase the multiple from 7x 2013e EV/Ebitdar to 7.5x EV/Ebitdar 2013e given the
continued strong performance (historic mid cycle range is 7-8x). This provides a new PT of 780p
from previous 680p. We rate the shares a Buy with the next catalyst being the Q1 results in
January.

JP MORGAN.

 Competitor capacity expected to be benign: We believe one of the key
reasons EZJ has been able to grow profits despite a c£230m fuel cost
headwind, is the capacity and pricing discipline seen from competitors in
the market (driven by high fuel costs). With the price of fuel expected to
remain elevated in FY13, we expect this to continue. EZJ expects
capacity from its competitors on its routes to fall -1.8% in 1H13, a
slightly bigger decline than seen in 1H12, so EZJ should once again we
able to grow profits in FY13 despite its cost headwinds

 Valuation: On our estimates, EZJ trades on 5.9x FY13E (Sept)
EV/EBITDAR and 10.2x P/E, compared to Ryanair on 6.8x FY13E
(Mar) EV/EBITDAR and 12.4x P/E. Both EZJ/Ryanair are trading at
their 2012 YTD average P/E (based on 12-month forward consensus
EPS), although EZJ trades at a discount to Ryanair on 10.1x vs. 11.9x.

22 Nov easyJet PLC EZJ Citigroup Buy 682.00 682.00 700.00 780.00 Reiterates

SP TARGET 780p.

22 Nov easyJet PLC EZJ Oriel Securities Buy 690.75 reiterates

EZJ EASYJET

23 Nov easyJet PLC EZJ Nomura Buy 691.50 693.50 650.00 850.00 Retains

SP TARGET 850p.

EZJ EASYJET

23 Nov easyJet PLC EZJ Deutsche Bank Buy 694.25 693.50 745.00 745.00 Reiterates

SP TATGET 745p

Any of you guys been tracking stelios latest venture FASTJET ? potential real
moneyspinner at under 4p currently and launching commercial flights next week.


Fastjet (LON:FJET) aim is to eventually ferry 12 million passengers between cities in Africa using the low-cost blueprint patented in Europe – an undertaking that would require a 40 strong fleet, but which would create a US$1 billion turnover business. Africa's aviation industry is valued at an annual $56bn (£35.7bn) but is known for a poor safety record and unreliability. Fastjet aims to set a european standard for Africa and bring air travel into the budgets of every african.The company has licences to operate from hubs in Ghana, Kenya, Tanzania and Angola.

The driving force behind Fastjet is easyjet founder Sir Stelios Haji-Ioannou, who along with other former easyjet executives have spotted great potential in aviation,s last " frontier territory ".

Website : http://www.fastjet.com/tz/corporate/board-of-directors


Latest News : 22nd November 2012

Fastjet has announced that, ahead of flight operations scheduled for next week, its first branded Airbus A319 has arrived at its base in Dar es Salaam, Tanzania.

Full approval to operate the aircraft has been granted to the African low-cost carrier by the Tanzanian Civil Aviation Authority. Two more fastjet-branded A319s are planned to be en route early next week, to be in Dar es Salaam in time for the airline’s first flight, scheduled for Thursday 29th November.

Fastjet’s team of 35 pilots, 65 cabin crew and seven maintenance specialists are already on the ground actively preparing for launch.In a little over a week since tickets went on sale, fastjet has already taken over 8,000 bookings on the first two routes; enough to fill over 60 A319s.

The fastjet.com web site received over 20,000 hits in its first four days and the mobile site is now live.Commenting on the significant progress, fastjet chairman David Lenigas said: “As expected, plans for fastjet’s official launch of operations are moving ahead right on schedule and we are delighted with the level of interest so far.“Demand for seats is high and we are in great shape to start flying next week. We are delighted to have such a solid foundation to build upon.”

Further to the Company’s announcement on July 24th 2012, fastjet has now formally entered into the £5 million Equity Financing Facility with Darwin Strategic, the majority owned subsidiary of Henderson Global Investors’ Alphagen Volantis fund.The EFF covers a three year period.

Yep seen you plugging it to me across road and on ample. Like it cheers. Waiting before all this economic crap is sorted before I buy.

26 Nov easyJet PLC EZJ Espirito Santo Execution Noble Buy 702.00 695.50 700.00 810.00 Retains

SP TARGET 810p.

goldfinger,since i first bought in to EZJ i have retained my original holding and was
lucky with two top-ups on what turned out to be near year lows.Has been one of
my better stocks in last five years so well pleased with how things have gone.
Also now with a fastjet holding i can see them doing great things too and stelios
has not failed to deliver for me so far.

EZJ EASYJET

27 Nov easyJet PLC EZJ UBS Buy 709.75 706.50 780.00 780.00 Reiterates

SP TARGET 780p.

However much I respect Stelios I really do believe it is now time for him (and the family) to back off and let the current board continue with their job in hand as it is pretty obvious they know what they are doing

I had a spot of good luck with Easy. Been there since £3.80 -- so a nice bonus at the end -- but when is the end ? I think it has the potential to reach £ 12.00
Might be optimistic but there is nothing to say otherwise. Strong company, top results and in this climate it seems one of the few really to invest long term.

Looks like these guys are set to go into the FTSE 100 at the end of the month.

Broker Notes 3/04/2013

Panmure Gordon re-iterated its "buy" recommendation on budget airline Easyjet (EZJ) with a 1,250p target price. The broker is impressed with the Q1 revenue per seat growth of 8% in a result which was significantly ahead of market expectations and news which resulted in the firm increasing its H1 revenue guidance to a range of 6-8%. Looking ahead, Panmure believes that anticipated 3-5% capacity growth will allow yields to grow strongly, boosted by increased penetration of the business market amongst other factors.


3rd april

Liberum Capital 'Buy' target 1,246.00

Reiterates

Better figures than expected this
morning on update.........

easyJet expects to deliver a first half performance in line with the guidance given in the 24 January 2013 Interim Management Statement.



Revenue per seat growth at constant currency for the six months to 31 March 2013 was c. 8.5%, marginally ahead of the guidance issued on 24 January 2013, driven in part by stronger than anticipated late bookings in the run up to Easter. easyJet's first half revenue per seat growth was approximately 1.5 percentage points higher due to the timing of Easter which fell on 31 March, a week earlier than 2012.