Stifel maintains its 'hold' rating on Aéroports de Paris (ADP) shares, with a price target reduced from €150 to €130.
With ADP due to publish its results on February 15, Stifel anticipates 'solid overall' figures, underpinned by the continued recovery in traffic and robust retail sales.
The analyst predicts a continued recovery in traffic thanks to Chinese travel and increased capacity from low-cost carriers.
Nevertheless, Stifel believes that the new tax on French concessions could create a regulatory constraint in the short term, and that the share price could remain under pressure in the short term.
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Aéroports de Paris develops and manages airports, including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget. In 2023, the Group handled c. 99.7 million passengers at Paris-CDG and Paris-Orly, and c. 326.7 million passengers abroad. Boasting an exceptional geographic location and a major catchment area, Aéroports de Paris is pursuing its strategy of adapting and modernizing its terminal facilities, upgrading quality of services and developing retail and real estate businesses. Sales break down by activity as follows:
- supply of airport services (32.9%): air traffic management, intermodal transportation and terminal management, telecommunication spaces, and installation of airport infrastructures, etc.;
- operating sales areas and services (30.5%): shops, restaurants, banks, exchange offices, etc.;
- real estate management (5.4%): land and commercial real estate property leasing (businesses, offices, hotels, logistics buildings, passenger registration and transfer, baggage handling, aircraft management (cleaning, guidance, storage and starting assistance, aircraft loading and unloading), etc.;
- other (31.2%): including international airport management, airport engineering services, specialized telecommunications services, etc.