Wizz Air Stock Has Huge Upside On Capacity Recovery Prospects

(7min)

Summary

  • Wizz Air's revenue remains stable despite capacity challenges, but costs have risen due to inflation and grounded aircraft, impacting profitability.
  • The airline's capacity is expected to grow by 1%, with improved visibility on new airplane deliveries and a return of wet-leased planes.
  • EBITDA growth and free cash flow projections indicate significant undervaluation, justifying a buy rating despite existing risks and cost pressures.
  • Wizz Air is nearing an inflection point that should reduce unit costs and enhance competitiveness, making the stock a promising investment.
  • Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More »
Airbus of Wizz Air airlines

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In August, I covered Wizz Air (OTCPK:WZZAF) and my stock screener still showed a strong buy rating for the name. If we look at the OTC ticker performance, that strong buy rating seems to be justified with a 9% return compared

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This article was written by

19.93K Followers

Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of EADSF, RTX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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