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Investing.com - Barclays (LON:BARC) has upgraded Wizz Air Holdings (LON:WIZZ) from Equalweight to Overweight and raised its price target to GBP15.00 from GBP11.00, citing improved mid-term EBIT margin expectations.
The investment bank increased its assumed mid-term EBIT margin from 6.5% to 7.8%, which substantially contributed to the higher price target. The GBP15.00 target would represent a 5.7x P/E ratio based on Barclays’ revised FY28 earnings forecast.
Barclays acknowledged a "significant period of uncertainty" remains until Wizz Air’s fleet renegotiation is defined, with the airline planning to present a new business plan to the market toward the end of this year.
The bank expects Wizz Air to face unit cost challenges due to slowing growth and anticipates the share price will be affected by falling consensus for FY26. Barclays noted that "financial consequences of poor recent decision-making will not vanish."
Despite these challenges, Barclays sees "a far brighter future" for Wizz Air with modest growth focusing on its core Central and Eastern European market, where the airline maintains a strong market position.
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