Davy Morning Equity Briefing
Sep 17, 2026
Wizz Air Holdings
Mid-term targets announced ahead of CMD; Q2 RASK better and H2 capacity cut by 5%
Wizz Air will host a Capital Markets Day at 14:00 BST today. Ahead of the presentation, the company has announced its medium-term targets out to FY30 – revenue €10bn; ex-fuel CASK 3.00c, EBIT margin of 10% and an investment grade balance sheet – the achievement of which should see significant upside to today’s share price. More detail will be given later in the day on how Wizz intends to reach these targets. Additionally, the revenue environment has been better than expected, with the company announcing today that it expects Q2 RASK flat (up from previous guidance of ‘down low single digits’), with ASK and H1 ex-fuel guidance remaining unchanged. Wizz has also pulled back H2 capacity by 5% given the current fuel prices into the winter. While Wizz capacity for the winter is still high, the capacity cuts will be positively received by the market.
Associated British Foods
Model update and home delivery analysis
We are lowering our FY26 and FY27 adjusted operating profit forecasts by c.1.8% and c.6.6% respectively, reflecting further weakness in Sugar. While we believe much of this is reflected in the valuation, visibility on a sustained recovery in earnings momentum remains limited. Management’s proposed rollout of home delivery in Great Britain represents a significant shift from Primark’s store-led model and creates a potentially meaningful new avenue for growth. In this report, we assess the infrastructure and capabilities in place to support home delivery, the scope for growth and the economics of adoption. The proposition is strategically coherent, but the extended rollout timeline, demerger and uncertainty around Primark’s broader growth strategy limit near-term visibility. We do not expect the market to underwrite meaningful value until execution is demonstrated.
Irish economy
Residential property prices accelerated in July
After rebounding strongly into the summer months from a soft start to the year, residential property prices accelerated in July with a faster monthly pace of growth compared to June. Last month, we reverted to our prior forecast that prices would grow 5.5% this year on average, and yesterday’s data further underscore the likelihood of such an increase. Despite higher inflation and interest rates, we think price increases will moderate only gradually over coming years, supported by very strong demand and an ongoing long-running shortfall of homes in the country.
