EasyJet (EZJ.L): Downgrading To Neutral, Though Upside Remains Should Castlelake Takeover Succeed

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EasyJet (EZJ.L): Downgrading To Neutral, Though Upside Remains Should Castlelake Takeover Succeed

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29 Jun 2026 12:23:25 ET │ 14 pages

EasyJet (EZJ.L)

Downgrading To Neutral, Though Upside Remains Should Castlelake

Takeover Succeed

CITI’S TAKE Neutral / High Risk ↓ from Buy / High Risk

The easing of war concerns and interest from Castlelake have seen the Price (26 Jun 26 16:30) £5.83

shares rise 75% since their mid-May lows. Completion of a takeover could

Target price £5.80↑ offer another 20-25%, though this alone is not enough to be buyers when

considering the outstanding impediments to completion. At the same from £5.00

time, we see no further upside from the carrier’s own turnaround plan Expected share price return -0.5%

after the recent rally, while current trading continues to sound challenging Expected dividend yield 1.7%

for summer. We move our rating from Buy/High Risk to Neutral/High Risk, Expected total return 1.2%

with our new 580p price target (up from 500p) in line with yesterday’s Market Cap £4,419M

close. US$5,848M

Potential takeover offers further potential upside from here — Castlelake initially

announced its interest in a takeover of easyJet on 29 May, and has since made three

proposals to buy the company. The latest was for 625p on 17 June in cash (prior were Conor DwyerAC

600p and 560p), alongside an alternative option for existing shareholders to take on +44-20-7986-2824

non-voting non-transferable shares. We estimated at the start of June (here) 770- conor.dwyer@citi.com

890p of value in easyJet’s net assets, and this remains the case. As noted before this

does not assign value to the company’s orderbook and slots, and so the true value is

likely toward the upper end of this range (53% above the current price). Assuming