NEW YORK (TheStreet) -- Shares of Ryanair Holdings (RYAAY) are up 4.94% to $55.92 after it was reported that it will make a nonbinding offer for a stake in Cyprus Airways on Friday as Europe's largest budget airline explores growth options, the Wall Street Journal reports.
Dublin-based Ryanair already has held several discussions with the government of Cyprus, which owns 93.7% of the carrier and is seeking investors, the Journal noted.
A decision on whether to make a binding offer would likely come early next year after a period of due diligence, Ryanair said.
TheStreet Ratings team rates RYANAIR HOLDINGS PLC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate RYANAIR HOLDINGS PLC (RYAAY) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."