Proactive Investors - Wizz Air Holdings PLC (LON:WIZZ) today received a lukewarm upgrade from analysts at Deutsche Bank (ETR:DBKGn), lifting its price target whilst not budging its recommendation for the European airline.
Deutsche pitched its new price target at 3,700p, up from 3250p, as it previewed upcoming financial results due next month (8th June).
“While we see a lot to like at Wizz and currently have a positive stance on the sector, we maintain our ‘hold’ rating, with more material potential upside elsewhere, most notably at Ryanair (LON:RYA) and the network airlines,” the German bank said in a note.
It added: “Unlike at Ryanair, where we just increased our traffic forecasts, based on our latest cut of the capacity outlook and our load factor expectations, we are trimming our forecasts for Wizz in FY24 by 3% from 64.5m passengers to 62.5m (FY25 unchanged at ~75m).
“At the same time, however, we bring our yield forecasts into line with peers, assuming fares per pax +16% yoy this summer, together with a continued strong fares environment in FY25.
“This more than offsets and results in increases of 7% and 3% to our earnings (EBITDA) for FY24e and FY25e, respectively, which, in turn, drives the 14% increase in our TP from 3250p to 3700p implying over 20% potential upside to the shares.”
In London, Wizz Air shares were priced around 1% lower on Wednesday changing hands at 3,016p each.