Wizz Air, EasyJet, and Ryanair Shares Rally on Deutsche Upgrades

Stocks in prominent airlines Ryanair Holdings PLC, easyJet PLC, and Wizz Air Holdings PLC witnessed an uptick on Wednesday morning, buoyed by a series of optimistic revisions from Deutsche Bank, a leading financial institution.

In a detailed analysis released early Wednesday, Deutsche Bank adjusted its stance on Wizz Air Holdings PLC, elevating it to a ‘hold' rating from its previous ‘sell' classification. This positive shift was attributed to Wizz Air's forward-looking statements regarding their proactive measures to address the repercussions of aircraft groundings. 

These groundings had been necessitated by ongoing investigations into technical issues with Pratt & Whitney engines, a critical situation the airline managed to navigate with strategic aplomb.

A robust demand projection for intra-European flights extending into 2024 further influenced Deutsche Bank's reassessment. This optimistic travel forecast prompted the bank to revise its share price target for Wizz Air, elevating it from 1,800p to a more ambitious 2,300p. 

This revised target suggests a notable 11.5% increase from Tuesday's stock closing price, signalling strong confidence in the airline's market performance and strategic direction.

Moreover, Deutsche Bank reaffirmed its positive outlook on Ryanair and easyJet, maintaining ‘buy' ratings for both airlines. The bank highlighted the advantageous impact of lower-than-expected fuel costs, which are anticipated to act as significant financial tailwinds for these carriers. 

Due to this analysis, Deutsche Bank revised its share price targets for both airlines. It projected an impressive 40% upside potential for Ryanair's stock and a 21% growth forecast for EasyJet's shares, underscoring a bullish stance on their future market performance.

The market responded favourably to Deutsche Bank's updates, with shares of the three airlines experiencing a noticeable uplift. Wizz Air led the gains with a 1.2% increase, followed by easyJet, which saw its stock rise by 0.7%. Ryanair experienced a more modest uptick of 0.3%, but the positive movement across all three stocks underscored investor confidence buoyed by the bank's comprehensive analysis and optimistic projections.

Deutsche Bank's upgrades come at a pivotal time for the airline industry, which continues to navigate the challenges and opportunities of post-pandemic recovery. The bank's projections reflect the resilience and strategic pivoting of these airlines and a broader recovery in the demand for travel, particularly within Europe.

Wizz Air share price. 

The Wizz Air share price rose 2.37% to trade at 2142.5p from Wednesday’s closing price of 2093.0p.