Wizz Air, IAG Shares Upgraded to Buy at BofA

Airlines Wizz Air and IAG were upgraded at BofA on Thursday.

BofA analyst Muneeba Kayani upgraded IAG to Buy from Neutral and kept a 200p price target on its shares, with the analyst stating that while she expects a slow start for European airlines in 2023, she anticipates a recovery in Q2.

Furthermore, Kayani said to investors in a research note that she expects demand for European airlines to surprise to the upside, and despite balance sheets being stretched, the sufficient liquidity and potential acquisitions justify a bullish case for the sector.

IAG is currently trading over 24% higher over the last three months, following a period of difficulty for its shares.

Kayani upgraded Wizz Air shares to Buy from Neutral, assigning the stock a 3,200p price target.

Wizz Air has gained over 20% over the last three months, with surging demand over the summer months providing a boost for shareholders, despite the macroeconomic headwinds.

Wizz Air is currently up 1.17% on Friday, whilst IAG has gained 0.51%.

However, Kayani was not bullish on all airlines and downgraded easyJet from Buy to Underperform. The analyst kept a 340p price target on the low-cost carrier’s shares and stated that easyJet is the only airline under coverage where unit costs are seen staying above pre-pandemic levels.

easyJet shares have struggled recently, only recovering 6% over the last three months.

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