Proactive Investors - Panmure Liberum has reiterated its sell rating on Wizz Air Holdings PLC (LON:WIZZ), citing persistent concerns over the airline’s high leverage and ability to grow profitably.
The broker has also reduced its target price from 1,200p to 1,100p.
Wizz Air is facing delays in its fleet expansion due to delivery setbacks from Airbus, which will affect its growth in the coming years, reckons Panmure.
"We retain concerns about Wizz Air’s ability to grow profitably, although the slower capacity growth rate enforced by Airbus delivery delays does somewhat mitigate these," the firm noted in its research.
Wizz Air has adjusted its fleet plan in response to the delays, including switching its remaining A320 NEO orders to the larger A321 NEO aircraft, which offers better seat cost economics.
The airline continues to grapple with high levels of debt compared to peers such as Ryanair (LON:0RYA) and easyJet (LON:EZJ), adding to the investment bank’s cautious outlook.