Restructuring story may rebuild confidence
Summary: We raise our target price from 17.0 GBP to 20.0 GBP and reiterateour Buy recommendation, reflecting the promise of a restructuring story.
Following the fiscal Q1/26 conference call held on 24 July, we concluded that a
major structural change is under way, which the market should welcome. The
management might be on the right track to build confidence in investors. Wizz
Air’s CEO stressed to refocus on core CEE markets and announced to cut
capacity growth prospects. It was crucial as the sell-side analyst community
has long questioned the viability of the annual growth plan of 20%. Despite the
withdrawal of the FY26 outlook, there’s a very good chance that the pressure
on the stock will ease. Following the cautious and prudent commentary,
investors may look beyond this year and focus on the restructuring plan.
Wizz Air Holding is a European airline. As of Mar 31 2017, Co. provided more than 500 routes from 28 bases, connecting 141 destinations across 42 countries. Co. has two reportable segments: the airline and the tour operator business units, marketed under the Wizz Air and Wizz Tours brand names, respectively. Wizz Air sells flight tickets and related services to external customers and, to an extent, to Wizz Tours. Wizz Tours sells travel packages to external customers covering the network of Wizz Air.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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