This is a play on short term GBP bounce potential- See October 19th on GBP – . Easy Jet price evolution is strongly correlated to the Sterling and as most Airlines to fuel prices. We expect a short term bounce in GBP and believe most of bad news in terms of oil prices impact is already priced in.
PE is in 6 to 7 range and dividend yield (based on last dividend) above 6%. Price to book below 2.
- Stock is down 50%+ from highs in 2015 and 40% from Pre-Brexit levels.
- Daily MACD has turned positive 2 days ago .
- Positive Divergence Price/MACD.
- Target 1200-1250 pence.
- Risk limited to recent lows around 850 pence : SL below these levels.