Ryanair falls on talk of profit warning

A passenger jet belonging to Irish discount airline Ryanair takes off at Charleroi airport in southern Belgium, in this file photo dated February 2, 2004. Shares in Ryanair fell as much as 7.5 percent on market talk of a profit warning after Morgan Stanley cut its price target on the Europe's biggest low-cost airline, traders and analysts said.

LONDON (Reuters) - Shares in Ryanair (RYA.I) (RYA.L) fell as much as 7.5 percent on market talk of a profit warning after Morgan Stanley cut its price target on the Europe's biggest low-cost airline, traders and analysts said.

"There is talk that they (Ryanair) may be steering brokers to lower their expectations for earnings," one trader said.

Morgan Stanley cuts its share price target on Ryanair to 3.60 euros from 6.35 euros.

A spokesman for Ryanair said the company did not comment on market speculation. Shares in the carrier were down 6.7 percent at 3.78 euros in Dublin having earlier fallen as low as 3.75 euros.

(Reporting by Paul Hoskins)