- Wizz Air Holdings
- 17 November 2025 14:20:52
Source: Sharecast
The bank said it was changing its EBITDA(R) forecasts by -1%/ +5%/ -1.5% in FY26E/ FY27E/ FY28E.
"Our forecasts are below consensus," RBC said. "We cut both revenue per available seat kilometre and also fuel cost forecasts in FY26E-FY27E, and model lower capacity growth from FY28E."
The bank said its price target is a function of FY28E EV/ EBIT, a year of around 13 grounded aircraft on average, on its estimates, down from 35 in FY26E.
"As a result, we look beyond current suppressed margins in FY26E-FY27E, but don't give Wizz Air full credit for a potential further margin recovery from FY29E," it said.
"We model gradual margin improvement over FY26E-FY30E although with reduced sale-and-leaseback gains (as aircraft deliveries are increasingly taken into ownership) one factor limiting the pace back improvement."
The bank noted that Wizz plans a capital markets day, which it said will be an opportunity to detail a route to higher earnings, although RBC would expect the market to view delivery on longer term ambitions as a "show me story" given some previous misses/downgrades.
RBC maintained its ‘sector perform’ rating on the stock.