Analyst Jaina Mistry from Jefferies maintained a Sell rating on Wizz Air Holdings and keeping the price target at £9.50.
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Jaina Mistry has given her Sell rating due to a combination of factors impacting Wizz Air Holdings. One of the primary concerns is the company’s recent passenger growth figures, which, although positive at 6.8% for July, indicate a slight decline in load factor by 1 percentage point to 92.8%. This suggests that while more passengers are flying, the planes are not as full as they could be, which could impact profitability.
Additionally, to meet the quarterly consensus of 19.6 million passengers, Wizz Air would need to significantly accelerate its growth to 10.5% in the remaining months of the quarter. While there is optimism about a busy August, the necessity for such a high growth rate in a short period adds uncertainty. The seat capacity trends also show a challenging environment, with an 11% increase expected in August, which may not be sustainable. These factors combined lead to a cautious outlook on the company’s ability to meet expectations, justifying the Sell rating.
According to TipRanks, Mistry is a 4-star analyst with an average return of 9.2% and a 63.48% success rate. Mistry covers the Consumer Cyclical sector, focusing on stocks such as InterContinental Hotels, Whitbread, and Jet2 PLC.