BUZZ-Airlines: Davy ups Wizz Air, cuts easyJet

** Davy Research reiterates its preference for low-cost carriers entering peak season

** "The big topic in the space currently is the industry’s elasticity of supply to a change in the oil price," its analysts say

** They add that it's an encouraging sign that should also support pricing at airlines under coverage and their valuation multiples

** Davy also sees the rising oil price as catalyst for consolidation

** "...the airline profit pool within Europe is shared among a select few and there is scope for these operators to improve competitive positioning and market share"

** It ups Wizz Air (Frankfurt: WI2.F - news) to "outperform", citing the scope for 15 pct capacity and earnings growth over the next decade

** The brokerage also adds Ryanair (already rated "outperform") to its Conviction List, replacing easyJet

** easyJet gets cut to "neutral" as the stock has now broadly approached Davy's PT of £18.5