Citi has raised its profit estimates for Wizz Air Holdings PLC (AIM:WIZZ) this year but cut those for the next few years, meaning it kept its 'sell' rating in place.
This year's earnings are expected to gain from improved unit cost performance, largely due to higher expected aircraft sale-and-leaseback gains in the second half.
Despite this, the US bank cut its estimates for 2027-2030 on expected slower revenue growth.
In the recent interim results, Wizz flagged ongoing operational and commercial improvements, including a "pivot away from high cost locations".
Citi's share price target was increased slightly to 810p, reflecting better cash conversion and lower leverage, but the rating was unchanged amidst medium-term margin expectations from the market that it sees as "too optimistic".