Dolmen Butler Briscoe is tipping low-cost airline Ryanair as a "buy" on the basis of a forward price/earnings multiple of between 25 and 26 which it believes is merited by the company's strength, positioning and potential for growth.

The brokers derive a price target of €10.25 (£8.07), using an average forward p/e multiple of 25.5, representing a 15 per cent upside on last Friday's closing price.

And they maintain that scope for further valuation expansion exists in the event of positive rerating in the airline sector.