Wizz Air: Hot shot (downgraded to HOLD)
The stock is up nearly 30% since our upgrade to a BUY last week, driven by the news of a vaccine and an impressive performance on cash burn in the summer. At this point, we are not increasing our FY22E forecast significantly, as we believe there is a good chance that the crucial summer 2021E peak season could remain disrupted by the pandemic, at least to some extent. We maintain our view that Wizz Air is the best-positioned carrier in Europe, due to its cost leadership, the most efficient fleet and a core market with substantial organic growth potential (CEE). We remain bullish on the share price over the medium to long term, and believe that, on a 2-3Y horizon, the upside is significant, even to the current levels (close to all-time highs). The room for further upside in the near term is limited, however, in our view, and we believe that factors such as: delays in production and deployment of the vaccine; Brexit; the recertification of the MAXes; and what are likely to be very weak traffic figures this winter, could weigh on the share price in the near term. We downgrade our recommendation to HOLD, with an unchanged 12M price target (PT) of GBP 44/share.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.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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