Citi places Wizz Air on 'negative catalyst watch'.
Analysts at Citi placed budget carrier Wizz Air on 'negative catalyst watch' on Monday, stating it now sees downside risk to the group's FY25 guidance.
Source: Sharecast
Citi said it had updated its estimates on Wizz Air to better reflect recent trends in traffic, fuel and pricing commentary.
In FY25, Citi now expects Wizz Air to deliver adjusted net income of €258.0m, down from a previous estimate of €345.0m and company guidance of €350.0m to €450.0m, principally due to softer pricing and higher unit costs.
Citi also lowered its capacity growth expectations for FY26 to roughly 19% based on recent guidance at Wizz's capital markets day.
"We open a negative catalyst watch as we see downside risk to the FY25 guidance and consensus expectations of €300.0m," concluded Citi as it lowered its target price on the stock from 1,300p to 1,000p.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
