Deutsche Bank Research has downgraded Wizz Air Holdings Plc (LON:WIZZ) to “hold” from “buy” rating, cutting its price target to 1,400 pence from 1,500 pence.
Analyst Jaime Rowbotham noted that the airline’s guidance at its first-quarter results in July pointed to flat revenue per available seat kilometer year over year.
Despite weaker last-minute pricing in peak summer months, the outcome is expected to be broadly in line with earlier forecasts.
On the cost side, Wizz Air had guided for an improvement in ex-fuel costs per available seat kilometer in the second quarter compared with a 14% increase in the first quarter.
Deutsche Bank now forecasts a 1% decline year over year for the quarter, compared with a 2% increase expected previously. The revision reflects lower disruption costs and the later timing of maintenance expenses.
The change has led to an uplift in Deutsche Bank’s second-quarter profit before tax and foreign exchange forecast to €338 million from €296 million.
However, a one-off tax payment is expected to offset the gains, bringing the second-quarter profit after tax forecast down to €240 million from €252 million.
Source :
https://www.investing.com/news/stock-market-news/deutsche-bank-cuts-wizz-air-to-hold-lowers-pt-after-cost-and-tax-adjustments-4246226
