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Barclays (LON:BARC) downgraded Spanish airport operator AENA SME SA (AENA:SM) from overweight to equalweight on Thursday, while slightly reducing its price target to €238 from €240.
The rating change comes despite Barclays maintaining its positive view of the company, with the downgrade primarily attributed to AENA’s stock trading close to the firm’s price target. The minor price target reduction reflects higher expected capital expenditure at Barcelona’s airport.
Barclays described AENA as a "high-quality, well managed company" that continues to benefit from strong travel demand from both inbound tourism and Spain’s robust economy. The firm also dismissed concerns about AENA’s upcoming regulatory review as "overdone."
The research note highlighted that AENA’s capital expenditure is expected to increase significantly as the "capex holiday" the company has enjoyed since its 2015 privatization comes to an end. The recent agreement to expand Barcelona’s airport supports this outlook.
Barclays views the increasing Regulated Asset Base (RAB) positively, noting that AENA "has a track record of earning or exceeding its regulatory contract" and expects airport charges to remain "relatively stable through the forthcoming regulatory review."
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