Wizz Air Holdings: Buy Rating Backed by Projected Capacity Growth and Resilience Despite Cost Challenges

Wizz Air Holdings (WIZZ – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Alex Irving from Bernstein maintained a Buy rating on the stock and has a p3,000.00 price target.

Alex Irving has given his Buy rating due to a combination of factors that suggest potential growth for Wizz Air Holdings. Despite a recent quarterly performance that fell short of expectations, with revenue and EBITDA missing consensus estimates, the company managed to exceed net profit forecasts due to a significant tax credit. This indicates some resilience in their financial performance.
Looking ahead, Wizz Air is poised for a return to capacity growth in FY 2026, with a projected 20% year-over-year increase, particularly during the winter months. This growth, along with higher load factors, is expected to support revenue per available seat kilometer (RASK). However, the company faces challenges with rising costs, especially as it phases out the A320ceo fleet and deals with airport cost improvements. Despite these challenges, the potential for increased capacity and improved load factors underpins Irving’s optimistic outlook.

WIZZ’s price has also changed slightly for the past six months – from p1335.000 to p1207.000, which is a -9.59% drop .