EasyJet (LON: EZJ) share price has shown a remarkable recovery since the start of the year. Most airline stocks are soaring in 2023 as the travel restrictions have eased significantly. Air travel has seen a sharp increase over the past few months despite an increase in airfare. EasyJet airlines stock has gained more than 50% in the past few weeks.
Since the spread of the pandemic, airlines across the globe have been suffering to make both ends meet. Many airlines had to go through the tough times of mass layoffs and route cuts. Nevertheless, the industry seems to be recovering now as global traveling is increasing with each passing day.
Although EasyJet airlines have faced a decrease in its number of passengers, still the company’s revenues are experiencing a tailwind. In the first quarter of its fiscal year, passenger revenues fell by 13% as compared to pre-lockdown levels. Nevertheless, the ancillary revenues pushed the overall revenue to an uptick of 3%. This was a 35% increase in ancillary revenues alone.
EasyJet flights are serving along all the major global routes along with its European subsidiaries. According to the most recent news, EasyJet shares (LON: EZJ) have been upgraded to buy by Deutsche Bank AG.
The recently released report from the global investment giant suggests a price target of 580p for EasyJet stock. Previously the analysts from Deutsche gave a price target of 410p. However, the bank’s US counterpart Goldman Sachs still maintained a target of 450 GBX for the second-biggest European airline.
Technical analysis of shows that the stock has been in a constant downtrend since 2020. This also correlates to the global lockdown and the associated travel restrictions. EasyJet (LON: EZJ) share price appreciated to 922p level in April 2021 but failed to hold.
The following downtrend tanked the price to the low of 280 GBX in October 2022. Nevertheless, the price has shown a tremendous recovery since then, as it is now trading 75% above that low. The stock has also broken out of the downward trendline, signaling a bullish reversal. However, bulls need to reclaim the 724p level before targeting further upside. This level also matches the 0.618 Fib retracement level of the retracement that began in February 2022.
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