COST carrier Wizz Air received a boost yesterday when both Investec and UBS started coverage of the company with “buy” ratings.
“The leading low-cost carrier in Central and Eastern Europe [CEE] is set to outperform peers in terms of passenger and profit growth due to its highly attractive network anchored in a high growth region,” said Investec analysts.
UBS analysts echoed Investec’s comments, saying that the Hungarian carrier’s focus on CEE offered opportunities for structural growth.
The analysts added that despite Ryanair proving a strong competitor in the region, Wizz Air had increased its profitability and taken over as the carrier with the largest market share, at 39 per cent.
Investors weren’t convinced however, Wizz Air, which floated in London in February, closed the trading day down 0.45 per cent.