In major news on UK stocks, Wizz Air Holdings (GB:WIZZ) shares continued to soar higher after the rebound in profits reported in its FY24 annual results released yesterday. Following the upbeat numbers, analyst Ruairi Cullinane from RBC Capital assigned a Buy rating to WIZZ stock, predicting a more than 50% upside. Wizz Air shares are trading up by 0.54% as of writing after gaining 13.2% in yesterday’s session following the release of their results.
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Based in Hungary, Wizz Air is a low-cost airline offering flights to around 200 destinations in Europe and the Middle East. This year marks the airline’s 20th anniversary. Since its launch, it has carried 390 million passengers.
Wizz Air’s FY24 Performance
In Fiscal 2024, Wizz Air successfully returned to profitability with an operating profit of €437.9 million. This marked a remarkable recovery from the €466.8 million loss in the previous fiscal year.
The carrier’s profits were driven by a 30.2% surge in revenue to €5 billion and a 21.4% rise in passenger numbers. The airline saw robust demand across all its markets, with a record 62 million passengers during the year.
Moving forward, Wizz Air has indicated a positive start to FY25 with strong summer bookings. The load factor is anticipated to rise to 92% compared to 90.1% reported in FY24.
RBC’s Bullish View
Cullinane is optimistic about the airline’s positive pricing outlook, which supports the guidance. Wizz Air’s ticket RASK (revenue per available seat kilometre) increased by 11.2% to €2.30 in FY24, indicating a favourable pricing environment. He also believes the airline is well-positioned to raise its fares in the future.
Furthermore, RBC acknowledges the airline’s robust medium-term growth prospects, supported by its A321neo order book and its presence in the rapidly expanding Eastern European and Middle Eastern markets. The airline received 39 new A321neo aircraft in FY24 and expects another 27 in FY25.
Is Wizz Air a Good Stock to Buy?
As per the consensus among analysts on TipRanks, WIZZ stock has been assigned a Hold rating. The company’s ratings consist of one Buy and three Hold recommendations. The Wizz Air share price target is 3,062.50p, which implies an upside potential of 40% from the current share price.
