Athens International Airport stock rating upgraded by HSBC on dividend profile

Published 08/08/2025, 09:16
Athens International Airport stock rating upgraded by HSBC on dividend profile

Investing.com - HSBC upgraded Athens International Airport (AIA:GA) from Hold to Buy and raised its price target to EUR12.80 from EUR8.40, representing a 52% increase.

The upgrade reflects approximately 23% upside potential for the airport operator’s shares, according to HSBC’s analysis published Friday.

HSBC revised its valuation methodology to include dividend discount modeling and peer comparisons alongside its previous discounted cash flow approach, which it says better captures AIA’s dividend profile and normalized earnings expected in 2025-26.

At 2025 estimated EV/adjusted EBITDA of 9.7x and P/E of 15.8x, AIA currently trades at 11% and 15% discounts respectively to European peers, HSBC noted in its analysis.

The new target price implies a 2026 estimated dividend yield of 5.0%, which HSBC indicates is in line with the European peer group average.

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