Wizz Air confirmed at BUY, TP GBP 38.5 - Capturing market share
We confirm our BUY recommendation for Wizz Air with a new TP of GBP 38.5 (up from GBP 31.0) per share, on the back of a better than expected 1Q performance and capacity utilisation. The company responded well to the impact of the crisis by showing flexibility in its cost structure, reducing expenses by 74% yoy while capacities decreased by 88% in 1Q, which together with stronger than expected revenues (cargo & repatriation flights during the crisis, more ancillaries) resulted in a 1Q earnings beat. Going forward we also expect Wizz Air to outperform its peers based on fundamentals and the withdrawal of legacy carrier capacities could result in Wizz Air capturing more market share, benefiting from its low cost base. The revenue and profitability over the forecast horizon might seem bullish initially, this is however driven by an almost 50% fleet growth until FY 22/23, unit revenues are expected to be ca. 15% lower over the forecast horizon.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.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
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.