Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - Morgan Stanley has upgraded Aeroports de Paris (EPA:ADP) from Equalweight to Overweight, while raising its price target to EUR139.00 from EUR131.00.
The upgrade comes as Morgan Stanley believes the market has overestimated regulatory risks ahead of the December 2025 draft proposal for a new multi-year regulatory period, known as ERA IV.
The investment bank notes that both Aeroports de Paris and the regulator ART have taken steps to reduce uncertainty around the upcoming regulatory decision, including providing guidance on maintenance capital expenditures and conducting public consultations for Orly and Charles de Gaulle airports.
Morgan Stanley points out that Aeroports de Paris is currently trading at a significant discount compared to its regulated asset base, with its high-quality retail and real estate franchises valued at less than 11 times expected 2026 EV/EBITDA, which it considers undervalued compared to peers Aena and Zurich at approximately 13 times.
The firm also highlights several positive factors supporting its more optimistic outlook, including solid traffic projections into the Winter Schedule 2025/26, improving dynamics in international assets after approximately five quarters of value compression, and retail growth opportunities expected to materialize by the second half of 2026.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.