Ryanair shares dropped 12 cents to €4.95 on the ISEQ this morning following a statement by investment bank Credit Suisse First Boston (CSFB) cutting the airline's rating to "underperform".
However, the shares rebounded in the afternoon and at 3.20 p.m. were trading at €5, down 7 cents. According to the bank its price target for the airline has been almost halved to €4.42 down from €8.10 and an "overperform" rating.
CSFB said last month's profit warning had damaged confidence in Ryanair's business model.
The profit forecast for the airline this year has been reduced by 18 per cent while the forecast for next has been slashed by 35 per cent.
In a briefing note the bank said Ryanair needed two or three quarters of strong figures to restore confidence.