ADP: Stiffel downgrades stock

(CercleFinance.com) - Stifel has downgraded its rating on the Aéroports de Paris (ADP) share to "sell", with a target price of 75 euros (current price: 97 euros, -1%), in the wake of a 48% reduction in its 2021 EBITDA estimate for the airport operator.


It says that it is now more cautious about the recovery in traffic given the new lockdowns in Europe and the slow pace of vaccination - particularly in France: for 2021, it expects traffic to be around 50% lower than pre-crisis levels.

The broker also expects the net debt-to-EBITDA ratio to increase more than eightfold by 2022, leading it to anticipate a decline in the payout ratio to 30% of net profits (instead of 60%) when dividend payments resume.


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