Bullish: Stuart Blair
It’s hard to be bullish on easyJet (LSE: EZJ) shares when it continues to deliver bad news. But while I believe that volatility is here to stay for the short term, I feel that there is long-term upside potential. Here’s why.
Firstly, there are signs that international travel is making a comeback. Indeed, easyJet expects capacity this quarter to be 60% of 2019 levels, compared to just 17% in Q3. Further, the health secretary Sajid Javid, has recently indicated that compulsory PCR tests will be abandoned in favour of lateral flow tests. This should open travel up to a significantly larger number of people, and easyJet will be a prime beneficiary.
Secondly, there is the possibility that easyJet may be a takeover target soon. This comes after Wizz Air reportedly approached the airline, with an all-share deal. Although it was reported that this deal “significantly undervalued” the … Read more