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UBS has upgraded Wizz Air to a buy rating, forecasting 50% growth in the pan-European airline's stock over the next 12 months. The London-listed company is a low-cost airline operating from nearly 40 airports and flying to over 50 countries. Wizz Air shares are already up by 50% this year, and UBS analysts expect the stock to increase by another 50% to £43 ($54.47) a share over the next 12 months. Deutsche Bank analysts raised their price target for Wizz Air to £37 but reiterated their "hold" rating on the stock. Deutsche analyst Jaime Rowbotham lowered the bank's forecast for the number of passengers flying Wizz Air next year by 3%, in contrast to its upgraded forecast for rival Ryanair , Europe's largest airline.
Persons: Jarrod Castle, Wizz, Jaime Rowbotham, Rowbotham Organizations: UBS, Wizz, Deutsche Bank, Wizz Air, Air, Ryanair, Europe's Locations: London, Central, Eastern, Swiss, Frankfurt, United States, Wizz
Shares of London-listed airline easyJet are set to soar by 55% over the next year, according to UBS. The Swiss investment bank raised its price target to £6 ($7.34) a share after hiking its forecasts for passenger traffic and profitability at the pan-European airline. EasyJet's shares were trading at £3.87 on Tuesday afternoon, about 70% below its pre-pandemic levels. A recent decline in global oil prices and the dollar index works favorably for easyJet, analysts at UBS said. UBS forecasts the airline will reach 91% of its 2019 passenger volumes next year and return to pre-pandemic levels in 2026.
Transportation could undergo a significant transformation in the coming decades, and that could create upside for some well-known stocks, according to UBS. Those opportunities include high-speed rail, electric vehicles, sky taxis, self-driving cars and so-called "last-mile" solutions for shorter transport. "The technology is still a work in progress, but most governments are supportive of innovation and the benefits that come with SDVs, though they impose strict testing requirements," the UBS note said. Smaller vehicles, like electric scooters and motorcycles, are also seen as a growing category. Indian and Japanese companies like Suzuki are expected to outperform for motorcycles and other smaller vehicles, but UBS does list Polaris as a buy.
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