UK-based companies Rolls-Royce Holdings (GB:RR) and EasyJet PLC (GB:EZJ) stocks have seen their stocks soar since the beginning of 2023. The stocks are trading up by more than 40% YTD.
Both RR and EZJ were hard hit by the pandemic, which impacted the aviation sector. However, analysts are bullish on further growth in these share prices considering their recovery strategy, pushing revenues and profits higher.
Here, we have used the TipRanks Stock Screener tool to list out these companies with high growth in share prices. This tool helps the user handle an ample amount of data and transforms it based on different parameters accordingly.
Let’s have a look at the details.
Rolls-Royce Holdings PLC
Rolls-Royce Holdings manufactures engines for the aviation, defense, and energy sectors.
The company’s stock has gained more than 50% YTD, mainly pushed by its 2022 earnings. The stock has been among the best-performing stocks on the FTSE 100 index so far in 2023.
The company’s yearly numbers were driven by a rebound in international travel and an improvement in demand from China. The company posted a 57% jump in its underlying profits of £652 million in 2022, exceeding analysts’ estimates.
The company’s biggest division in terms of revenues, civil aerospace, saw an increase of 35% in large engine flying hours. These hours have already reached 65% of the pre-pandemic levels, and the company expects them to reach 90% in 2023. A full recovery is also expected in 2024.
The company’s defense segment is also well-positioned for long-term growth based on higher military spending by countries globally. The company’s defense order backlog was worth £8.5 billion at the end of December 2022.
After posting such solid numbers, analysts have reiterated their Buy ratings on the stock and remain bullish on further growth in the share price. Analyst Charles Armitage from Citigroup commented that the company has a “clear route to better cash flow.”
Is Rolls Royce a Good Stock to Buy?
RR stock has a Moderate Buy rating on TipRanks, based on seven Buy, four Hold, and one Sell recommendations.
The target price is 172.82p, which is 15% higher than the current price level.
easyJet is a leading airline in Europe known for its low-cost services. The company operates across 34 countries and has a fleet of more than 300 aircraft.
EZJ stock had a solid start to 2023 and has been trading up 46% YTD. The stock was in sync with the overall airline sector, which has shown huge growth in the last few months, driven by high travel demand.
In January, the company announced its trading update for the first quarter of its fiscal year 2023. Along with the reduction in losses, EasyJet also reported a 47% growth in its passengers in Q1 2023. The numbers were ahead of expectations, but the company still has a long way to go before achieving full profitability.
Analysts are bullish on easyJet Holiday, which delivered a profit of £13 million during this quarter. It remains one of the key drivers for the company, which has already registered a more than 150% increase in customers. easyJet holidays are currently 60% sold for the summer of 2023.
EasyJet Share Price Forecast
Based on five Buy, three Hold, and two Sell recommendations, EZJ stock has a Moderate Buy rating on TipRanks.
The average target price is 528.81p, which is 9.6% above the current trading level.
Analysts are more bullish on RR considering its growth achieved in profits and a high order book value.
For EZJ, the revival is still on, and the company is expecting to surpass market expectations of profits in 2023. Improved travel demand, strong bookings, and the upcoming holiday season will drive more revenues in 2023.