Jaina Mistry, an analyst from Jefferies, maintained the Sell rating on Wizz Air Holdings. The associated price target remains the same with £9.50.
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Jaina Mistry’s rating is based on a combination of factors that suggest a cautious outlook for Wizz Air Holdings. Despite a notable increase in passenger numbers by 17% in August, reaching 7.3 million, the load factor experienced a slight decline of 0.6 percentage points to 94.8%. This indicates that while more passengers are flying, the proportion of occupied seats relative to capacity has decreased.
Furthermore, to meet the quarterly consensus of 19.6 million passengers, Wizz Air would need to see a passenger growth acceleration of 3.1% in September. Although the company appears to be on track to meet this target with a 7.1% increase in seat capacity, there is a concern that this could lead to a weaker load factor. These factors combined suggest potential challenges in maintaining profitability, leading to the Sell rating.
According to TipRanks, Mistry is a 4-star analyst with an average return of 10.7% and a 69.23% success rate. Mistry covers the Consumer Cyclical sector, focusing on stocks such as InterContinental Hotels, Whitbread, and Jet2 PLC.