RYAAY - European airline stocks: Deutsche Bank prefers Ryanair over Wizz Air
2023-05-03 06:45:46 ET
Deutsche Bank lifted estimates on Wizz Air Holdings ( RYAAY ) ahead of the airline company's earnings report scheduled for June 8.
Analyst Jaime Rowbotham says Wizz Air is different than Ryanair, where Deutsche Bank just increased its traffic forecasts on.
"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."
Rowbotham noted that this more than offsets and results in increases of 7% and 3% to the firm's FY24 and FY25 EBITDA estimates on Wizz Air ( OTCPK:WZZAF ), respectively. The higher estimates then drove a 14% increase in the price target on Wizz Air to 3700p from 3250p to represent over 20% potential upside to the shares.
Deutsche Bank said there is a lot to like on Wizz Air ( OTCPK:WZZAF ) and currently has a positive stance on the sector, but keeps a Hold rating in place with more material potential upside seen with Ryanair and other network airlines.
More on Wizz Air:
- Wizz Air: Margin Risk With No Upside
- Read more breakdowns on Wizz Air from Seeking Alpha analysts
- View the growth metrics
- See the financial and valuation comparisons to sector peers
- Dig into the Seeking Alpha Quant Rating
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European airline stocks: Deutsche Bank prefers Ryanair over Wizz Air