RBC Capital Markets downgrades Wizz Air to 'underperform'
By Michele Maatouk
Date: Friday 10 Jul 2026
(Sharecast News) - RBC Capital Markets downgraded Wizz Air on Friday to 'underperform' from 'sector perform' as it argued that "poor earnings quality may weigh on a hockey stick recovery".
RBC said that on its forecasts, Wizz Air will generate a negative or below peer group return on capital employed/ return on invested capital, and trades above peers on EV-valuation metrics throughout the bank's forecast period.
"This suggests that the market is pricing in more of a 'hockey stick' recovery than we forecast," it said. "We forecast circa 6-7% EBIT margins by FY30E, (which would be typical for European airlines in CY26 and on our outer year forecasts), although below company ambitions, which we think are to return to double-digit percentage margins, delivered pre-pandemic."
RBC also said it doesn't expect recent declines in fuel to translate into near-term upgrades.
"We cut our FY27E-FY28E forecasts below consensus even on reflecting a lower fuel price versus our last update (as we trim unit revenues/ increase ex-fuel unit costs)," it said.
"We allow for higher fuel costs than consensus in 1Q, think RASK [revenue per available seat kilometre] decline could be a risk beyond 1Q given still-elevated capacity growth and note a tough comp for ex-fuel unit costs in 4Q, given the timing of other income over FY26."
The bank kept its price target on Wizz at 900p, implying around 20% downside.
At 1002 BST, the shares were flat at 1,172.96p.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN