easyJet share price: where now as airline stocks fall over coronavirus fears?
The low-cost carrier has seen its share price fall by nearly 30% over the last five trading sessions as investors grow increasingly concerned about the impact of the coronavirus on airline stocks.
easyJet has seen its share price tumble by almost 30% over the last five trading sessions, with investors growing increasingly worried about the impact of the coronavirus on airline stocks.
In less than a week, easyJet has seen around £1 billion wiped off its stock market value as a result of the virus continuing to spread throughout Europe and the Italian government’s draconian rules aimed at stopping the outbreak.
easyJet is trading at £10.62 a share as of 12:00 (GMT) on Thursday, down from £15.08 on Friday last week. Global equities have witnessed a significant sell-off due to the impact of the coronavirus, with the FTSE 100, DAX and S&P 500 all falling by more than 7% over the last five days.
British Airways owner IAG has also suffered too, with the stock down 18% over the period, with it trading at £5.10 a share at the time of publication.
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Coronavirus dampens easyJet’s positive outlook from analysts
The outbreak has derailed easyJet’s positive outlook from analysts with Société Générale upgrading its rating from ‘sell’ to ‘hold’ earlier this month, as well as upping its price target for the stock to £14.40 a share.
However, it was Citigroup that offered the most optimistic outlook for easyJet in February, with analysts from the US-based investment bank reiterating their ‘buy’ rating and upgrading their price target to £17 a share.
Based on easyJet trading at £10.62, the pair believe the stock has a potential upside of between 35.6% and 60%. However, such gains are unlikely to materialise until the coronavirus outbreak is contained.
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