No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - RBC Capital Markets downgraded Wizz Air to 'sector perform' from 'outperform' on Friday and slashed the price target to 1,500p from 2,400p, saying it was "throwing in the towel" after the airline's full-year results.
On Thursday, Wizz reported a 61% decline in full-year operating profit to 167.5m, well below the 246m expected by analysts.
RBC said it was making the downgrade as it cut its FY26 estimated NPAT by 31% - 37% below consensus compiled pre FY25 results - and reflects FY25 net debt above its forecast.
"We think investors are likely to treat scope for improvement as a 'show me story' and we do not expect Wizz Air's recovery potential to be realised in FY26," it said.
RBC said that its price target and recommendation are on a sector-relative basis 12-month view.
"We think risk-reward is more attractive in other low-cost carriers, where we have greater confidence that fuel and FX tailwinds will translate into earnings upgrades," it said.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.