ADP: HSBC raises its target, but advises to go light

(CercleFinance.com) - On Friday, HSBC reiterated its 'lighten up' recommendation on ADP shares, highlighting the airport operator's 'demanding' valuation despite the uncertainties surrounding the dossier.


While the group has set itself the objective of moderate traffic growth over the long term, the broker considers that its outlook to 2026 is uncertain from a regulatory point of view.

In its view, it is simply impossible today to estimate the level of operating expenses for regulated activities in 2026, or the implications for the company's profitability.

Despite this, the broker points out, the stock is currently trading at a 12% premium to its European peers in terms of Enterprise Value/Ebitda 2024, and at over 40% in terms of PER.

While HSBC has raised its price target from 104 to 110 euros, it points out that this target shows a downward potential of around 12% from current price levels.

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