Wizz Air’s price target was cut at JPMorgan and Barclays
They kept Buy ratings on the stock
The cuts follow the company’s recent trading update
Wizz Air (LON: WIZZ) shares regained their initial losses following its half-year report and more on Thursday, closing the session over 5% higher, reflecting a general rise in London-listed airline stocks during the session.
The carrier reported a trading update for the six months ending September 30 on Wednesday, revealing an operating loss for the period of €63.8 million. However, Wizz told investors that revenue and capacity growth was strong, with revenue coming in at €2.2 billion, up 149.2% year-over-year, and passengers carried coming in at 26.5 million, up 112%. In addition, it expects capacity to be 35% higher in the second half compared to 2019.
Even so, Wizz Air shares fell as low as 1,548.5p on Wednesday before recovering and closing that session down 0.09%.
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Despite Thursday’s rise, analysts at JPMorgan and Barclays adjusted their price targets on the stock lower.
JPMorgan’s David Perry cut the firm’s price target on Wizz Air to 2,800p from 3,050p, maintaining an Overweight rating on the shares, while Barclays analyst Rishika Savjani reduced the firm’s price target on Wizz to 2,640p from 3,500p, also keeping an Overweight rating on the stock.
Perry’s price target cut is his second in two months after he lowered the firm’s price target on Wizz to 3,050p from 3,900p on October 10.
Overall, according to TipRanks, out of six analysts, two have Buy ratings on Wizz Air (presumably JPMorgan and Barclays), three have Hold ratings, and one analyst has a Sell rating on the stock.
Wizz Air shares have started Friday’s session up over 3%.
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.
