Deutsche Bank has upgraded Wizz Air Holdings PLC (AIM:WIZZ) to 'buy' from 'hold', citing a major shift in the budget airline’s strategy.
The broker kept its price target unchanged at 1,500p, with the shares last trading at 1,215p.
After a turbulent period marked by the suspension of its Abu Dhabi operations and engine reliability issues, Wizz Air is refocusing on its core European markets and taking a more cautious approach to growth.
The airline now plans to grow capacity at a slower rate of 10–12% annually over the next three years, down from a previous target of 15–20%.
Wizz is also reducing its fleet ambitions, opting to take delivery of just 10–15 Airbus XLRs (instead of 47), and converting the rest of its order to A321neos with a more flexible delivery schedule out to 2032.
Deutsche welcomed the strategic reset, seeing greater resilience and a clearer path ahead for the airline.
The shares rose 1.8% to 1,237p.