Fraport: Oddo remains neutral, pending the 'new normal'
(CercleFinance.com) - An analyst at Oddo BHF this morning confirmed his "neutral" rating on the Fraport share, after noting from a talk with its CFO, massive savings to get through the crisis and prepare for the "new normal" (the post- COVID-19 crisis).
Traffic in Frankfurt could collapse 50% over the year and a return to 70 million annual passengers (as in 2019) could take up to 24 months. During this period, the group will adjust its cost base and if necessary, may decide to close terminals if the opening of Terminal 3, which is scheduled for the end of 2023, were to lead to overcapacity, the broker said.
The "different world" mentioned also concerns the management of airports which could be more agile, lighter in terms of costs and less complex (streamlining of services offered to customers with a priority on services that they would be prepared to pay for...).
Oddo BHF therefore confirms its target price of 44 euros, meaning upside potential of 19%.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Traffic in Frankfurt could collapse 50% over the year and a return to 70 million annual passengers (as in 2019) could take up to 24 months. During this period, the group will adjust its cost base and if necessary, may decide to close terminals if the opening of Terminal 3, which is scheduled for the end of 2023, were to lead to overcapacity, the broker said.
The "different world" mentioned also concerns the management of airports which could be more agile, lighter in terms of costs and less complex (streamlining of services offered to customers with a priority on services that they would be prepared to pay for...).
Oddo BHF therefore confirms its target price of 44 euros, meaning upside potential of 19%.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.