Pareto ups Norwegian Air to 'buy' on 'stellar micro' performance in tough environment

Norwegian Air Shuttle ASA

16/04/2026 07:00

** Pareto Securities upgrades rating for Norwegian budget airline Norwegian Air Shuttle  NAS.OL to "buy" from "hold" on what it calls a "stellar micro" performance in a tough environment

**  The broker notes that while macroeconomic challenges and potential European jet fuel shortages pose risks, the airline is protected by domestic fuel production

** Pareto analysts point out that capacity struggles at competitors SAS and Lufthansa LHAG.DE allow the company to implement fare hikes of 8-15% over Q2 and Q3

** The brokerage argues that despite "a messy short-term picture", the competitive backdrop is shifting in the airline's favour, highlighting a robust balance sheet

** "Assuming the situation stabilises over the coming month, and fuel shortages remain limited, Norwegian looks well-placed to withstand the ongoing cost surge," Pareto says

** The firm reduces its price target by 11% to NOK 17 to reflect slightly lower earnings per share estimates for 2026 and 2027 due to rising macroeconomic costs

** Nine out of 33 analysts rate the stock "strong buy"/"buy", 22 "hold", two "sell"/"strong sell" - LSEG data

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))