Wizz Air gains after analyst upgrades the stock on strategic reset

Published 30/07/2025, 12:50
© Reuters.

Investing.com -- Wizz Air (LON:WIZZ) shares climbed around 3% Wednesday after Deutsche Bank analyst upgraded the stock to Buy from Hold to reflect a series of strategic shifts outlined by the low-cost carrier last week.

The price target remains unchanged at 1,500p, implying meaningful upside from the last close of 1,215p.

“Circumstances (many outside the company’s control) have forced Wizz Air to have a re-think,” analyst Jaime Rowbotham said in a note.

The update follows Wizz Air’s decision to suspend its Abu Dhabi operations and reorient its focus toward core European markets.

Alongside quarterly results, the carrier announced a more tempered growth plan, with capacity expansion now guided at 10–12% annually over the next three years—down from the previous 15–20%.

Aircraft plans are also being reshaped. Wizz will take delivery of just 10–15 A321XLRs, far fewer than the 47 originally ordered, converting the remainder to A321neos under a more extended timetable through 2032. The company also aims to resolve its engine grounding issues, targeting zero aircraft grounded due to GTF engine issues by mid-2027.

Wizz Air posted weaker-than-expected first-quarter earnings last Thursday, as ongoing engine-related aircraft groundings continue to weigh on performance. The budget carrier also pushed back its timeline for returning affected jets to service.

As of June 30, Wizz had 41 aircraft grounded due to mandatory inspections of Pratt & Whitney GTF engines. The airline now expects these planes to gradually return to operation by the financial year ending March 2027—roughly a year later than previously anticipated.

Operating profit for the quarter came in at €27 million, well below the €87 million consensus forecast compiled by LSEG and marking a 38% drop from the same period last year.

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