Market Report: EasyJet sputters on Goldman's advice to bale out

EasyJet met fresh turbulence yesterday after Goldman Sachs, worried by the rising price of oil and the company's exposure to the British consumer, advised investors to "sell". "EasyJet has high UK consumer exposure, and with a surge in data points highlighting deterioration in UK consumer confidence, we regard [it] as vulnerable to a reduction in discretionary travel, especially in the price-stimutated leisure segment," said Goldman. The company's low fuel hedging and high operational leverage also gave the broker cause for concern. "We are 50 per cent below September 2009 Reuters consensus and see significant risk to earnings," the broker added, sending easyJet to an intra-day low of 241p, its lowest level since July 2005. By the close, the stock had recovered to 246.25p, down 6.37 per cent or 16.75p. British Airways, which... [read full story]