Wizz Air: Low-Cost Carrier with Strong Competitive Position in CEE

Antonio Garufi presented his in-depth investment thesis on Wizz Air (London: WIZZ) at European Investing Summit 2017.

Wizz Air is a low-cost carrier with a strong competitive position in Central and Eastern Europe, where it is a market leader. Listed on the LSE, it has a market cap in excess of 2 billion pounds. The company is on a path of future growth due to the following factors: (i) it has the lowest operating costs in the industry; (ii) it has market leadership in the CEE region; (iii) it has the best operating fleet in the area; (iv) it is taking market share from poorly positioned companies in the EU and CEE; (v) it has an outstanding management and track record of growth. Wizz trades at an affordable valuation and generates robust cash flow. It is a takeover candidate in light of its competitive position and outlook — a high-quality business with long-term potential, available at an attractive valuation based on estimates for 2018: EV to EBITDA of 4.1x, EV to EBIT of 5.3x, and FCF yield of 12.6%.

About the instructor:

Antonio Garufi is a portfolio manager at Decalia Asset Management, based in Geneva. He has more than a decade of experience in finance, of which he spent one year with Citigroup and three years with J.P. Morgan in London. He then went on the buyside at Astor Investment in Milan, where he analyzed and executed several investment opportunities across a number of sectors and asset classes. He graduated from Bocconi University in 2005, where he is lecturer, has a Phd in Business Administration and attended the Value Investing Program at Columbia Business School. He is passionate about fundamental analysis, margin of safety and in depth research.

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