Fidelity Wise Origin Bitcoin Fund amends trust agreement to allow in-kind share transactions
On Tuesday, Bernstein analysts adjusted their outlook on Amadeus (BME:AMA) IT Group SA ( AMS (VIE:AMS2):SM) (OTC: AMADY), reducing the price target to EUR87.50 from the previous EUR90.00. Despite this change, they maintained an Outperform rating on the stock. The analysts cited foreign exchange headwinds as a reason for trimming earnings estimates, noting an adverse translational exposure. According to InvestingPro data, the company, currently valued at $35 billion, trades at a P/E ratio of 24.09, with three analysts recently revising their earnings estimates downward.
Amadeus, recognized as the largest entity in Air distribution and Air IT, reportedly had a solid performance in key performance indicators (KPIs) during the recent quarter. The company, with more than 60% of its EBITDA generated from its Air IT and Hospitality segments, is gradually reducing its reliance on the slower-growing GDS business. InvestingPro analysis reveals strong financial health with an overall score of "GREAT" and impressive revenue growth of 11.58% in the last twelve months.
The firm continues to gain market share in distribution through the Global Distribution System (GDS) and secures new contracts in the Air IT sector. Analysts highlighted the company’s robust balance sheet and its practice of returning cash to shareholders. They anticipate a roughly 14% annual total shareholder return in a steady state, assuming constant multiples: this includes a 7% annual increase in net income, a 3% dividend yield, and a 4% buyback rate. The company has maintained dividend growth for three consecutive years, currently offering a yield of 0.47%.
The launch of Amadeus’ new product, Nevio, is expected to further strengthen the company’s position, especially after securing significant contracts with British Airways and a combined deal with Air France and KLM. Bernstein analysts predict that Amadeus will continue to win more shares from its competitors or through new outsourced contracts.
In summary, while the price target for Amadeus IT Group has been slightly lowered to EUR87.50, the analysts’ outlook remains optimistic. They set the new price target at 21 times their 2027 EPS estimate of EUR4.2.
In other recent news, Amadeus IT Group announced its fourth-quarter revenue for 2024, reaching €1.541 billion, which represents a 13.8% increase from the previous year. The company’s EBITDA stood at €529 million, with a margin of 34.3%, and they reported a free cash flow of €359.6 million. Amadeus IT Group also revealed a reduction in its net debt to 0.91 times. Looking ahead, the company has provided guidance for 2025, expecting revenue growth between 9-13% and EBITDA growth of 7-12%. In a strategic move, Amadeus announced a €1.3 billion share buyback program to be completed within the next 12 months. Analyst updates have also been noteworthy, with Deutsche Bank (ETR:DBKGn) raising its price target to EUR73 while maintaining a Hold rating. Meanwhile, Bernstein upgraded Amadeus IT Group from Market Perform to Outperform, setting a new price target of EUR90. The upgrade from Bernstein reflects confidence in the company’s growth, particularly in its Order Management system, which is gaining traction among major airlines.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.