easyJet downgraded by Bank of America

Bank of America Merrill Lynch has cut easyJet (LON:EZJ) to 'neutral' from 'buy', which it says is given the increasing lack of visibility on pricing.

It added: "While we do not doubt the shares on certain metrics appear cheap after a volatile year (plagued by ATC strikes, terror events, overcapacity, volatile FX swings and fuel-related pricing pressures), we think the shares have limited upside potential until we see capacity constraint at easyJet (FY17 is set to grow a hefty +8%) and/or yield momentum stability."

Analysts have lowered their price objective to 1,050 pence a share (from 1,300 pence).

Meanwhile, Citigroup stuck with its 'buy' recommendation following the low cost carrier's latest trading statement, albeit cutting its target price to 1,200 pence (from 1,500 pence).

Citi's Andrew Light commented: "We expect a strong recovery in FY18 - First, competitive capacity could be reduced if weak airlines scale back or exit. Second, easyJet's unit cost and fuel efficiency will benefit from larger A320s replacing A319s."

At 3:09pm: (LON:EZJ) easyJet PLC share price was -33.75p at 899.75p