On Friday, HSBC analyst Ruxandra Haradau-Doser upgraded Wizz Air Holdings Plc (WIZZ:LN) (OTC: WZZZY) stock rating from Hold to Buy, setting a new price target of GBP19.00, up from the previous GBP11.50. The upgrade follows an analysis of the airline’s performance over the past nine months and its adjusted guidance.
Haradau-Doser noted that while the firm’s estimates for Wizz Air’s FY25 net income of EUR43 million fall below the company’s own guidance and the Visible Alpha (VA) consensus of EUR118 million, the forecast for FY26 is more promising. The HSBC analyst’s EBIT estimate for FY26 aligns closely with the VA consensus, and the net income estimate is 5% higher than the VA consensus of EUR322 million.
The analyst expects that investor attention will shift towards the company’s FY26 performance in the coming weeks. As a result, HSBC has rolled over its price-earnings-based valuation to FY26 estimates from FY25. This change underpins the new target price of 1,900p, suggesting approximately a 50% upside potential for Wizz Air stock.
The upgrade reflects a positive outlook for the airline’s future earnings, despite the current estimates for FY25 being below guidance. The analyst’s comments indicate a strategic shift in valuation methodology, focusing on the longer-term potential of the airline rather than immediate earnings.
Wizz Air, known for its low-cost business model, has been navigating the challenges of the airline industry, which has faced significant disruption in recent years due to various global events. The stock upgrade by HSBC signals confidence in the company’s ability to recover and grow in the forthcoming fiscal year.
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