Analyst Jaina Mistry from Jefferies maintained a Sell rating on Wizz Air Holdings (WIZZ – Research Report) and keeping the price target at £13.50.
Jaina Mistry has given her Sell rating due to a combination of factors impacting Wizz Air Holdings. The company’s passenger growth in April was 10.8%, reaching 5.4 million passengers, but this was accompanied by a slight decline in the load factor to 89.8%. This indicates potential challenges in maintaining efficiency and profitability.
Furthermore, the consensus for the first quarter anticipates 18 million passengers, which would require a significant acceleration in growth to 20.2% for May and June. Given that the seat capacity data for these months aligns closely with April’s figures, achieving such growth appears overly optimistic. If passenger growth for May and June mirrors April’s performance, it could result in approximately a 1% pressure on the full-year consensus sales, suggesting downside risks to financial expectations.
According to TipRanks, Mistry is a 3-star analyst with an average return of 2.1% and a 44.79% success rate.