Wizz Air (LON: WIZZ) shares gained around 0.4% Wednesday after analysts at UBS said they see a potential upside in the airline’s stock.

The investment bank lifted WIZ to Buy from Neutral, raising its price target for the stock to 4,300p from 3,400 pe per share in a note to clients. 

The firm’s analysts told investors that with an earnings recovery underway, they see further potential for a re-rating and share price upside.

UB stated that the carrier “should continue to take market share over the next five-plus years” and that they “continue to see upside risk” to their forecasts in part based on the airline’s cost base and focus on central and eastern European markets.

Furthermore, UBS sees material upward revisions to Wizz’s earnings forecasts and found it “surprising” that Wizz shares were pressured following last week’s earnings release.

 The firm’s analysts also pointed to positive summer travel trends as another reason for the re-rating. 

Our View: After a strong spike in March, Wizz Air Twitter mentions have remained stable, suggesting demand has followed a similar trend. 

However, Semrush data provides a more positive picture, with visits to the Wizz Air website expected to reach record highs this month, topping March data. In addition, Google searches for the airline are trending higher. 

By Sam Boughedda