UBS HAS initiated coverage of Aer Lingus, giving it a “buy” rating and a frothy 12-month price target of €1.20 a share.
That’s a premium of just under 50 per cent to its price today.
UBS cites Aer Lingus’s net cash balances of €377 million, which is 70 cent a share. It is also based on demand for air travel here having “troughed” with growth likely in the Irish economy from next year on.
UBS also puts a figure on the likely cost to Aer Lingus of the EU’s emissions trading scheme for airlines, which takes of on January 1st. The broker estimates that it will cost Aer Lingus a hefty €5-10 million a year. Ouch.
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THE TELECOMS industry gathers tonight at the Burlington Hotel for its annual charity ball. This will include an auction to raise funds for the Capuchin day centre in Dublin for the homeless.
Nine prizes are on offer but the one that’s sure to catch the eye is item number two – a full week shadowing Eircom chief executive Paul Donovan.
It is described as a “unique experience for any transition, college, post graduate or MBA student to gain an insight into what it’s like to be a CEO”. It will involve a dedicated leadership seminar and a chance to “walk a week” in the shoes of a CEO.
Given Donovan’s busy agenda – he’s trying to cut a deal with unions on more cost savings and renegotiate its near €4 billion debt – it could be highly instructive for the winner. It might also be an interesting prize for one of Donovan’s rivals to land.
