Wizz Air gets target price revision
The fall in Wizz Air's share price was triggered by the low-cost airline reporting a halt in passenger traffic growth for April-June (Q1 in the current financial year), while rivals Ryanair and easyJet both showed growth in this period.
In addition, the downtime due to the inspection of Pratt & Whitney engines, and subsequent grounding of aircraft, is causing significant additional costs for the company, and the change in exchange rates has failed to support Wizz Air this time.
In the wake of weaker-than-expected Q2 figures, Wizz Air management has lowered its full-year profit guidance, projecting a net profit of only €350-450 million, compared to €500-600 million previously forecasted.
Following the disappointing numbers, two major analyst houses cut their target price on Wizz Air shares:
- Barclays: to 16 pounds from GBP 19 previously;
- Morgan Stanley: to GBP 19 from GBP 24.5.
The average TP for Wizz Air shares is currently £27.2, according to Refinitiv, which represents a 84% upside potential. However, in the wake of the negative result, it would not be at all surprising if other analysts lowered their target prices in the coming days.
Wizz Air's share price plummeted 20.9% on Thursday and is now down 31.2% this year.
Címlapkép forrása: Forrás: Földházi Árpád WizzAir
