Ryanair Holdings is the largest low-cost carrier group in Europe. It was founded in 1984 and has its headquarters in Dublin, Ireland. Originally a single airline, Ryanair, it has grown into a family of airlines, including Lauda, Malta Air, Buzz, and Ryanair UK.
This Irish giant boasts an extensive network connecting over 250 airports in 37 countries. The carrier focuses on low-cost travel across Europe with signature low fares. The Ryanair’s CEO is MichaelO’Leary. He was appointed CEO of Ryanair in 1994 and Group CEO in April 2019, having previously served as CFO since 1988.
Ryanair’s primary listing is on Euronext Dublin under the ticker RYA, while its ADRs [American Depository Receipts] are listed on the NASDAQ under the ticker symbol RYAAY.
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Ryanair Share Price & Dividend Yield
Between 2018 and June 2023, Ryanair shares had some difficulty sustaining any upside momentum (of course, the pandemic played a big role there). However, despite a more recent pullback (as of May 31), the stock has pushed higher since January 2024. Investors will be hoping the pullback is just a short-term decline before Ryanair begins to push higher again. Towards the end of 2023, Ryanair announced plans to pay a regular dividend for the first time.
Dividend Yield: 0.77%
Ryanair EPS and Revenue Breakdown 2020-2023
| Ryanair | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | €0.58 | €8.49 billion |
| 2021 | €-0.91 | €1.64 billion |
| 2022 | €-0.21 | €4.80 billion |
| 2023 | €1.16 | €10.78 billion |
Airline Industry Comparison
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Ryanair Share Price Forecast
Overall, according to data compiled by TradingView, out of 20 analysts covering the stock, 18 currently have a Buy rating on Ryanair shares, while two analysts have assigned the airline a Hold rating.
A View From The Bulls: RBC Capital analysts recently raised their price target on Ryanair to €25 from €24, maintaining an Outperform rating on the stock. The investment bank said they increased their EPS estimate for Ryanair based on a reduction in fuel costs.
Despite Bank of America lowering its price target on Ryanair ADRs to $170 from $176 in a recent note, they maintained a Buy rating on the stock, stating that while the airline confirmed softer summer pricing expectations, “demand is still robust.”
A View From The Bears: On the other hand, while not bearish, Deutsche Bank downgraded Ryanair to Hold from Buy in a recent client report. The bank said it believes customers are pushing back against price increases. As a result, Deutsche Bank now assumes Ryanair’s fares per passenger are flat year-over-year in fiscal 2025.
Average Analyst Consensus 12-Month Price Target: $163.82 (ADRs)
Our View: The introduction of a dividend certainly provides Ryanair shares with an added layer of attraction. Given the continued strength of travel demand, investors with a preference for dividend-paying European airline stocks may want to take a closer look at Ryanair.
Who Should Buy Ryanair Shares
Ryanair shares can be a good fit for certain investors, but it won’t be everyone’s idea of a good investment. Here’s who may prefer the stock:
The airline industry is known for its ups and downs. Ryanair is no exception, facing economic fluctuations and fuel cost swings. Investors comfortable with short-term volatility and a long-term view may find Ryanair a good fit.
Ryanair leans more towards a value stock. It has a strong track record of profitability and a lower valuation compared to some peers. Investors seeking stable, reliable growth might find Ryanair appealing, especially if the share price seems undervalued.
Given that Ryanair recently announced it will begin paying dividends, the stock may now be attractive to investors looking for regular income streams.
Ryanair boasts a massive network across Europe. Investors seeking airlines with a strong European presence should definitely consider Ryanair.
Ryanair’s success hinges on its efficient, low-cost operations model. Investors who believe in the continued viability and growth of this model will find Ryanair an attractive option.
