City scribes were buoyed by full year results from FTSE 250 carrier Wizz Air (LON:WIZZ), which included an uplift to its net profit guidance for 2018, which sent shares flying on Thursday.
Shares in the Europe-focused airline are up again today, 3.63%, to stand at 2,284p.
Net profit guidance ahead of prior estimate
The airline now expects net profit for the year to end March 2018 to be €250-270mln - well ahead of its previous estimate of €239mln.
"Management is confident that the fleet delivery schedule will continue to aid cost control and with lower industry capacity expected for 2018 along with "two" Easters the pricing outlook is more favourable than 2017," said UBS, which ramped up its target to £25.25 from £23 and rates shares 'buy'.
The Swiss bank reckons the firm can continue to see double digit traffic growth given its position as an ultra-low cost producer with the ability to take market share from the European flag carriers; it operates in markets which have stronger GDP growth than western Europe, and operates in under penetrated travel markets with growing propensity to travel.
HSBC, meanwhile, repeats a 'reduce' stance but lifts the target to 1,600p from 1,350p
It raises its full year net profit estimate by 18.5% to €227mln for 2018, but remain shy of guidance.
A well-run company...
"Wizz remains a well-run company executing a strong business plan. We are impressed by the stability of the business in the face of considerable management change in the past 18 months.
"Wizz traded robustly through the political instability and forex impact of the weakening of GBP following the UK’s vote to leave the EU last June. It was the last European airline to succumb to a profit warning in February 2017, and then only a modest one," notes analyst Andrew Lobbenberg.
Barclays has upgraded the share to 'overweight' and lifted its target to £22.40.
Its EPS forecasts for the full year 2018 and 2019 rise by 18% and 15% respectively.
Yesterday's results were particularly positive for Wizz, since in February it had warned that profits were likely to be €20mln lower after severe winter weather and rising costs began to bite.