Wizz Air shows the sector how to manage a crisis
 We lift our TP to 41.2 GBP/sh (prev. 34.0 GBP/sh) and upgrade our recommendation to BUY, reflecting Wizz’s very strong balance sheet, sufficient liquidity buffer, rigorous cost control and growing market share. The Hungarian carrier’s flexible and engaged management team gives a presentation to the sector on crisis management day by day. Despite rivals scale back, Wizz has uniquely taken aircraft deliveries in the last quarter ended on 30 June and opened new bases across Europe. Current expansion is elementary to Wizz to be able to grow rapidly and gain market share sooner than they’ve ever expected in the future. This makes Wizz Air peerless in the European Airline sector.
 Wizz Air is expected to deliver outstanding growth rates over the next 5 years despite having been experienced an unprecedented crisis. Based on the Company’s own fleet expansion plan, the carrier will operate with a fleet of 225 A320 and A321neo aircraft. This translates into a compelling 100% capacity growth within 5 years (avg. 15% p.a.) from FY20 level. We expect a ’20-25 Sales CAGR of 13% and an EPS CAGR of 18%.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.