EasyJet Share Price Forecast March 2022 – Time to Buy EZJ?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of British multinational low-cost airline group EasyJet (LSE: EZJ) are in the red today, after closing at 439.5p as of March 7th (20:04 GMT). EasyJet shares have fallen 38% in the last 12 months and 20% over the past six months. Due to the pandemic, the airliner’s operations were halted for a large chunk of the last two years.
EasyJet – Technical Analysis
EasyJet’s financial statement indicates a market cap of £ 3.593 billion with total assets worth £9.773 billion. Revenue for 2021 was at £1.46 billion with a profit margin of -58.85% compared to £3.01 billion in 2020.
Moving averages such as Exponential Moving Average (10)(548.3), Simple Moving Average (10)(566.5), Exponential Moving Average (20)(590.7), Simple Moving Average (20)(631.0) and Exponential Moving Average (30)(604.0) are indicating a sell action. Oscillators such as Relative Strength Index (14)(23.8) and Stochastic %K (14, 3, 3)(4.2) are neutral.
67% of all retail investor accounts lose money when trading CFDs with this provider
Recent Developments
EasyJet has expanded quite a bit since 1995. It currently operates more than 300 aircraft with 29 bases across Europe, the largest being Gatwick. It became the second-largest budget airline in Europe by a number of passengers back in 2014.
EasyJet’s latest financial results indicated that the company is improving. Revenue for the quarter stood at £805 million for the three months to 31 December 2021, compared to £165m recorded for the same period in 2020. However, the company is still at a loss recording nearly half (£213m) of the £423 million seen last year.
The company is currently wooing customers looking for budget holidays and will release a number of such holidays in an effort to drive up the occupancy of its planes. This is an efficient revenue driver for the future, which should prove popular as the summer holiday season approaches. EasyJet shares will also get a boost as global passenger volume is expected to reach 3.4 billion in 2022.
EasyJet is also facing some headwinds from the dreadful events linked to the Russia-Ukraine war, which has led to disruption and international travel uncertainty. The price of oil has also increased to over $100 a barrel, which will filter down into easyJet’s fuel costs. This will reduce margins and place pressure on revenues. To rectify this, the airliner has announced that it has 60% hedged fuel for the current financial year. This mitigation of risk will certainly help investors gain some confidence.
Should You Buy EZJ Shares?
EasyJet has a clear edge over its peers due to cheap flight deals. It is in a prime position to benefit as eager passengers look to potentially fly out for budget holidays. As a result, EasyJet shares can rise again. However, investors also have to look at certain risks. While the pandemic is currently under control, the emergence of a new strain could potentially change all that. Any news regarding this could have negative connotations for the easyJet share price. Secondly, jet fuel prices may increase because of the Russian- Ukrainian war. This may result in the fear of decreasing supply which in turn could have a negative impact on the company’s operation.
Despite these risks, there are several signs that point towards’s the company’s future is bright. It has delivered good results lately and expectations in 2022 are even higher. As consumers start travelling after the pandemic break, cheap options such as EasyJet will be in high demand. Considering this now is a good time to buy EasyJet shares.
Buy EZJ Stock at eToro from just $50 Now!
