Wizz, easyJet and Lufthansa move; Citi revision
Citi revises its ratings and price targets on several European airlines, including Deutsche Lufthansa, easyJet and Wizz Air. IGTV financial analyst @AngelineOng covers the stock turbulence.
(Video Transcript)
European low-cost airlines going places
Low-cost airlines across Europe are on the move. We're seeing Deutsche Lufthansa falling, as you can see there on this chart here, down 1.3%.
This is after Citi cut Lufthansa to sell from neutral and said it expected an increased or rising risk to 2024 margin targets due to pricing softness in long haul and the geared turbofan (GTF)-related groundings impacting unit cost performance.
Also, checking in on easyJet, because easyJet was also given a revision. Citi raising easyJet to neutral from sell. This is as it sees continued momentum in the holiday segment, partly offsetting price pressures in the airline segment. However, its shares are down as the GTFs peak around 1.7%.
One thing, though, is Wizz Air: checking in on that for you, because Wizz Air shares are also down on the session, down more than 3%. Citi, although it maintained a scale on Wizz Air, did say that the GTF engine problems had disrupted the growth trajectory and the company is now expected to see a full year, to be flat year on year.
Asian-route airlines set to recover
The main thing here is that Citi sees network flexibility and self-help as key to airlines' earnings this year, as it believes that the European short-haul recovery to pre-pandemic levels is broadly done, and therefore it expects those airlines with exposure to Asia to recover.
One last one that I am checking in for you is Ryanair, because a number of online travel agents stopped selling Ryanair flights in early December, as it gives you legal and regulatory pressure.
Now, checking in on Ryanair for you, because we did see a reaction there. Its shares are down some 3.8%. The Irish airline says the move is not expected to affect its for your profit, but looking at this chart, it looks like traders think otherwise.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
