El Al stock still rising despite return of foreign airlines

Share Israel Airways Ltd. (level:Elal))Which is controlled by Kenny Rosenberg and headed by CEO Dina Bin Tal Gansia, continued to rise, after completing a 60 % increase since the beginning of December 2024, although it decreased by 1.94 % yesterday. However, in November, the assumption in the market was that the price of the airline’s share had already reached its peak due to the imminent ceasefire in the north, which was finally signed and is still being held. Understanding that foreign airlines will soon be due to a 20 % decrease in the price of EL EL in a short period in November.

However, although foreign airlines have already started resuming flights to Israel, it seems that Eulogies has the premature EL Als. The price of the Israeli carrier shares continues to rise, including a 35 % profit since the beginning of 2025, and is currently trading with a market roof of 5.4 billion NIS – the 54 more trading companies on the Tel Aviv (TASE), and is included in the index. Tel Aviv 90.

From a broader perspective, the price of the airline's share increased by more than 300 % since the beginning of 2023, especially the benefit from the impact of the war, as foreign airlines canceled Israel's flights, and flights increased accordingly. EL Al again and repeatedly shattered her revenue records last year, making a much more net profit than she achieved before (411 million dollars in the first nine months), and she paid debts and even flirted with the idea of ​​obtaining the ISRACARD credit card company.

Despite the jump in the stock price, few analysts are negative in the current pricing of El Al. Two months ago, Daniel Alon, the administrative partner of the hedge funds in Ram from IBI, expects that Els's shares will rise. Even today, El Al Al Al he is expected to continue and insists that it is “still cheap”. “People thought that prices would decrease when foreign airlines returned, but prices have also increased all over the world, due to the global shortage of aircraft.” Boeing, Wrbybus, at the same time, they produce a much lower number of aircraft since Covid, while in the same The time the world's population grows and more people want to fly, which creates a triple effect. “

Alon estimates that the travel aircraft in Israel will settle with a 10 % decrease to 20 % of the peak prices in 2024. The treasures, which will be about $ 500 million to $ 1 billion by the end of 2025, we conclude the conclusion that it is the cheapest flight in the world, and with a large margin . -40 (The company's value is divided into profits).

Therefore, the share price must increase by 20 % to 30 % to reach the lower end of the comparison group prices, and these are the weakest and most leveled in its field. EL Al was subjected to a permanent change. Instead of paying the financing expenses from 50 to 100 million dollars, they have revenue. Another possibility is not included in the share price, which is a profit distribution advertisement that can lead to a significant increase in a value of 15 % -20 % in the short term. EL recently contacted the country to obtain permission to submit profit distributions for a year.

“There is a pent -up request.”

“I am absolutely not sure that the market is wrong. EL Al is very high during the war, on the borders with the high, filled the cash tanks and lower the debt burden. The financial situation of AL has improved in a way other than Prepare.

“Looking at the future, there is a lot of pent -up demand, and people need and want to fly. The demand for flights from Israel is already high, and if calm continues, it will be greater, even compared to pre -war levels. Not less than that – the demand will continue for El Al In the next two or three years.

On the other hand, Uri Tuwal, CEO of Tuval Investment House, doubts the stock prices: “Although many airlines return to activity at Ben Gurion Airport, the short -term uncertainty is still noticeable. But in our opinion, El AL, it is traded at an expensive price – so that the profit levels are not accustomed to their levels.

It was published by Globes, Israel Business News – En.globes.co.il – on February 18, 2025.

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