The easyJet (LSE:EZJ) share price has tumbled by nearly 30% during the last 12 months. But, regardless of what this trajectory may counsel, the underlying enterprise is delivering strong outcomes. Bookings for the subsequent three quarters are already forward in comparison with a yr in the past. And administration believes the corporate’s on observe to achieve a pre-tax revenue of £709m – 16.3% projected enhance year-on-year.

Does this imply the easyJet share price is massively underappreciated proper now? And if that’s the case, how excessive may the inventory climb over the subsequent 12 months? Listed here are the most recent analyst forecasts.

easyJet to take off?

As of 4 April, 15 of the 21 analysts following easyJet at the moment have a Purchase or Outperform advice. And this sturdy conviction can be mirrored within the 12-month share price targets for this enterprise. The common consensus expects the airline inventory to rise to 680p by April 2026, with even probably the most pessimistic outlook projecting 570p.

Contemplating the shares are at the moment (10 April) buying and selling at round 435p, there appears to be ample potential for price rises for any buyers who contemplate leaping in at this time. If these projections show to be correct, investing £5,000 proper now may develop to £7,907 by this time subsequent yr.

Whereas thrilling, that sounds a bit doubtful. Don’t overlook the inventory market usually provides annual returns close to the ten% mark, not 60%. So is that this a practical expectation?

The bull case

A fast look on the valuation definitely implies a big development potential. The agency’s ahead price-to-earnings ratio at the moment sits at a mud low-cost 5.9. By comparability, the inventory’s 10-year common is nearer to 12.5.

Seeing such a steep low cost often implies one thing’s fallacious. The newest buying and selling replace issued a warning that income within the second quarter has began “modestly” softer in comparison with a yr in the past. That’s definitely not good. Nevertheless, digging deeper, the problem seems to stem from administration’s investments to develop capability which might be anticipated to ship outcomes through the subsequent winter interval and past. In different phrases, this appears to be like like nothing greater than a velocity bump.

In the meantime, the revenue image’s wanting far rosier. The agency’s first quarter often lands within the crimson, similar to most airways. Nevertheless, the losses this time round landed at £61m versus £126m a yr in the past – a 52% enchancment. Pairing all this with extra flights flown, greater passenger volumes, and a boosted load issue, easyJet seems to be chugging alongside very properly.

What may go fallacious?

The corporate has definitely made a strong begin to its 2025 fiscal yr ending in September. And whereas efficiency within the second quarter may be a bit weaker, this seems to be nothing greater than short-term ache for long-term acquire. Nevertheless, easyJet’s nonetheless inclined to fluctuations in oil costs, which impacts the price of jet gas.

On the identical time, whereas US tariffs have been placed on pause final week, a worldwide commerce battle may nonetheless get away three months from now. And any retaliatory tariffs from Europe may impose greater prices on customers, adversely impacting demand for journey. However with £2.8bn of money & equivalents on its stability sheet, the corporate seems comparatively well-positioned to climate the storm.

With that in thoughts, I feel buyers in search of publicity to the short-haul journey sector could need to take a better have a look at easyJet.