Wizz Air shares got caught in some medium turbulence as analysts came to differing views of the recovery potential at the central-Europe based airline.
Heavyweight HSBC set a gloomy tone as it cut its rating to reduce, sending the shares down 6% to 2,935p.
The broker is worried about the airline’s decision not to hedge its fuel bill ahead of the Ukraine war, which puts it at a major strategic disadvantage said the broker and will make its growth plans "very costly" as a result.
Peel Hunt in contrast is a buyer, though largely because of the “extremely pessimistic scenario" outlook being painted by rivals such as HSBC.
Wizz Air offers fleet and capacity growth, according to the analysts, which should support a further reduction in unit costs.
Additionally, demand for flights is recovering post-pandemic and oil prices, although high, are cyclical and unlikely to remain above US$100 per barrel.
Also, in a different take to HBSC, Peel Hunt believes the lack of oil hedging will be a plus when the oil price eventually declines.
According to the broker, the stock should rally so long as there are no further downgrades.
Estimates, although cut, are modest for the financial year 2024 and 4,700p is its target.