Ryanair’s current share price “fails to reflect its structural growth capability and cash generation potential”, according to Davy Stockbrokers, the airline’s own corporate broker.

It added that the new group structure being implemented at the carrier group “adds a new growth dynamic, flexibility and competition”.

Davy has placed a price target of €15 on Ryanair shares. The stock, trading yesterday at €11.90, has been hit in recent weeks not only by its profit warning, but also by economic factors such as looming Brexit.

Ryanair recently announced that CEO Michael O’Leary is to assume the role of group chief executive, overseeing Ryanair as well as its subsidiaries, Austria-based Laudamotion and Poland-based Ryanair Sun, which will be rebranded as Buzz next autumn. Each unit, including Ryanair, will have its own chief executive.

Davy Stockbrokers said in a report yesterday that it believes Ryanair, Laudamotion and Buzz can in the medium-term operate fleets of 500, 100 and 150 aircraft respectively. Ryanair currently has about 450 jets, while Laudamotion will have 21 this summer. Buzz has 17 jets, with the fleet expanding to 25 this summer.

“This allows Ryanair to target share growth across the European market, replicating the success it has had in Italy, Spain and the UK over the past 15 years,” according to Davy.

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