On Friday, RBC Capital updated its financial outlook for Wizz Air Holdings (WIZZ:LN) (OTC: WZZAF) shares, increasing the price target to GBP33.00 from GBP32.00.
The firm maintained its Outperform rating on the airline's shares. This adjustment comes as RBC Capital anticipates a robust revenue per available seat kilometer (RASK) growth for the company.
Wizz Air's guidance, which forecasts high-single-digit RASK growth, has led RBC Capital to adjust its earnings before interest and taxes (EBIT) estimates upward by 11% for the financial year 2025.
Despite a reduction in capacity growth projections for FY26 and an increase in expected net debt, the firm's overall outlook remains positive, with the new price target suggesting a potential upside of more than 50%.
The firm's analysis indicates that Wizz Air's financial performance could outpace market expectations. According to RBC Capital, their net profit forecast for FY26 is approximately 8% higher than the consensus. This optimistic projection underscores the airline's capacity to generate profits above the average market predictions.
Wizz Air, which operates in the competitive airline industry, is being recognized by RBC Capital for its potential to deliver strong financial results in the coming years. The increased price target and sustained Outperform rating reflect confidence in the airline's strategic direction and operational efficiency.
Investors and market watchers will likely monitor Wizz Air's performance closely, considering RBC Capital's positive assessment and the substantial upside identified in the airline's stock value. The company's focus on RASK growth and cost management appears to be key factors in driving its financial success and investor confidence.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.