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On Wednesday, Berenberg initiated coverage on Avolta AG (AVOL:SW) stock, a leading global travel retail and food and beverage (F&B) concessionaire, with a Buy rating and a price target of CHF40.00. The firm highlighted Avolta's dominant position in the market, which has been bolstered by the strategic acquisition of Autogrill by Dufry in 2023.
Avolta's market presence is characterized by significant diversification, both geographically and in its product offerings. The company has managed to increase its share of sales despite a consolidating market, which remains highly fragmented. Berenberg predicts that Avolta will continue to outperform smaller operators and gain additional market share.
The firm identified several structural trends expected to support Avolta's growth, including a rise in passenger numbers and an increase in spending per traveler. Berenberg's analysis suggests that Avolta is on track to meet or exceed its medium-term organic growth guidance and surpass consensus estimates.
Furthermore, Berenberg anticipates that Avolta will effectively use its scale to further penetrate the high-growth Asia Pacific market. The comprehensive assessment of Avolta's market position, growth trends, and strategic initiatives led to the firm's positive outlook and the establishment of a CHF40.00 price target.
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